Colt, the iconic American firearm company is now owned by a foreign company. The Czech firearm company Česká zbrojovka Group, also known as CZG has purchased America’s most iconic gun maker. Colt reportedly sold for $220 million and eleven million shares of the Czech firm’s stock.
This news comes at a time when firearm purchases are at a new high in America. The two companies have been in negotiations for some time. The announcement that Colt sold to CZG broke yesterday according to the New York Post. CZG plans to use Colt’s manufacturing plants in North America to boost its global sales. At the same time, the Czech firm hopes to increase its firearm production. This will help the firm take a larger share of the overall firearms market. CZG hopes to sell to military, law enforcement, and private citizens alike.
Lubomír Kovařík, president and chairman of CZG said in a statement, “The acquisition of Colt, an iconic brand and a benchmark for the military, law enforcement and commercial markets globally, fits perfectly in our strategy to become the leader in the firearms manufacturing industry and a key partner for the armed forces,”
While they are announcing that Colt sold to the Czech firm, the sale is not technically final. In fact, the sale will close later this year. First, regulatory bodies will have to assess the transaction.
This takeover comes just five years after Colt emerged from bankruptcy. Dennis Veilleux, president, and CEO of the American gunmaker also made a statement on the transaction. From his perspective, Colt wasn’t so much sold to CZG. Instead, he says that is an opportunity to grow. He said, “Having completed a historic turn-around of the operations and financial performance at Colt over the past five years, this important next step with CZG positions the company to take advantage of significant growth opportunities.”
Colt Had Problems Before It Sold
Colt may have sold to a Czech firm but it seems that their guns will still be made in America. This may actually be a good thing for the iconic gun maker. They have had a rocky few years. In 2015, Colt filed for bankruptcy. This came after they were unable to pay millions of dollars to creditors and shareholders. While in bankruptcy, they continued their regular manufacturing operations. They were able to exit bankruptcy protection the next year.
While it may be good for the company, it would be understandable if consumers were unsure about the brand moving forward. Even if the manufacturing stays stateside, hearing that Cold sold to a foreign entity may be enough to give some gun buyers pause. Colt has been a part of the American fabric since the 1800s. It was Sam Colt’s Peacemaker revolver that helped to tame the West. Colt helped to popularize the revolver. The brand’s innovations are some of the most important in the world of firearms. It’s strange to think of a foreign brand stamped alongside Colt’s iconic logo.