CZ buying Colt

January 11, 2021, 07:18 PM

Micropterus

CZ buying Colt

Didn't see this posted anywhere. Please forgive if it was.

Given how Colt has been run, and how CZ is apparently run, this must be good news for Colt.

https://www.thetruthaboutguns....lks-to-acquire-colt/

quote:

BREAKING: CZ In Late Stage Talks to Acquire Colt

Translated from an article in major German newspaper, Die Welt:

…CZ is planning the complete takeover of the world-famous US company Colt – including its Canadian subsidiary. To this end, after research by WELT AM SONNTAG, a declaration of intent was signed. A spokeswoman for CZ Ceská Zbrojovka confirmed the plan in principle to the newspaper.

Since CZ Group became a public company in mid-2020, listed on the Prague Stock Exchange, we can see in the company’s own corporate filings that it’s deep in due diligence and negotiations for a potential purchase of Colt. In fact, the parties expect to wrap up the deal this month (bold text below added):

…further to our previous disclosure with respect to the Letter of Intent dated November 5, 2020 for the acquisition of 100% of the outstanding equity interest in Colt Holding Company LLC (“Colt”), CZG hereby informs that it has agreed with Colt on the extension of the exclusivity period to complete its due diligence until the end of January 2021.

The parties have reached an agreement in principle on key commercial parameters of the transaction and they continue discussing the technical parameters, regulatory review requirements, and legal terms and conditions of the transaction.

Execution of the definitive documentation for the transaction is estimated to take place by the end of January 2021, subject to completing the negotiations, finalizing the transaction documentation, and obtaining necessary approvals of the relevant stakeholders.

TTAG reached out for comment from the principals, but both parties referred us to the public filing linked and quoted above. We’ll bring you more details as we get them.

January 11, 2021, 08:28 PM

Rolan_Kraps

WOW! Just when Colt was just starting to produce stuff that interested me. I wonder what they'll do with Colt?

January 11, 2021, 08:33 PM

mutedblade

quote:
Originally posted by Rolan_Kraps:
WOW! Just when Colt was just starting to produce stuff that interested me. I wonder what they'll do with Colt?

Make it better

January 11, 2021, 08:34 PM

pedropcola

What they will do with Colt is start making way better Colts. Dan Wesson’s run circles around Colt, this is good news.

January 11, 2021, 08:43 PM

rscalzo

quote:
I wonder what they'll do with Colt?

They couldn't do any worse that Colt did for many years.

I do wonder what it will do for any future govt. contracts.

January 11, 2021, 08:43 PM

BBMW

I'm guessing they want the branding and not too much more. They're already making 1911s (Dan Wesson.) Crossbreeding between DW and the Colt 1911s is an interesting concept. I wonder if they'll keep the AR15/M16 business.

January 11, 2021, 09:30 PM

TSE

quote:
Originally posted by BBMW:
I'm guessing they want the branding and not too much more. They're already making 1911s (Dan Wesson.) Crossbreeding between DW and the Colt 1911s is an interesting concept. I wonder if they'll keep the AR15/M16 business.

That is just about all Colt Canada does. They are definitely getting in to the AR business in a big way.

January 11, 2021, 09:40 PM

jimmy123x

quote:
Originally posted by BBMW:
I'm guessing they want the branding and not too much more. They're already making 1911s (Dan Wesson.) Crossbreeding between DW and the Colt 1911s is an interesting concept. I wonder if they'll keep the AR15/M16 business.

They WANT the government contracts. Colt has been producing some really nice stuff as of late. I have a Colt Competition that is beautifuly put together........ and they've been making some not so nice stuff, like the Pythons with all of the issues.

January 11, 2021, 10:33 PM

BBMW

I wonder if foreign ownership will factor into the continuation of the government contracts. Then again, we've bought a shitton of stuff from FN.

quote:
Originally posted by jimmy123x:
quote:
Originally posted by BBMW:
I'm guessing they want the branding and not too much more. They're already making 1911s (Dan Wesson.) Crossbreeding between DW and the Colt 1911s is an interesting concept. I wonder if they'll keep the AR15/M16 business.

They WANT the government contracts. Colt has been producing some really nice stuff as of late. I have a Colt Competition that is beautifuly put together........ and they've been making some not so nice stuff, like the Pythons with all of the issues.

January 11, 2021, 10:35 PM

iron chef

quote:
Originally posted by Rolan_Kraps:
WOW! Just when Colt was just starting to produce stuff that interested me. I wonder what they'll do with Colt?

Moving Colt HQ from Hartford, CT to Little Rock, AR would be a good start.

January 12, 2021, 01:43 AM

2000Z-71

Maybe replace whomever has been in charge of Colt's product planning? Somebody could write an MBA thesis on the major trends in the gun industry that Colt could've dominated but missed the mark entirely.

Cowboy Action Shooting - Pretty much handed that market to Ruger and the Italian clones.Many of us would've loved to have had a Colt, but the only thing available was limited production from the custom shop at $1,200+

AR-15 - Pretty much no innovation whatsoever when companies like Daniel Defense, Noveske and almost everyone else flourished.

Concealed Carry - When states started allowing it where was Colt? Smith & Wesson sold a shit ton of j-frames, where was the Dick Special?

1911 - Kimber, S&W, Ruger, Dan Wesson, etc. everyone makes a 1911, Colt pretty much has the same traditional offerings with hit and miss quality over the years. Don't get me wrong, I have a recent production Gold Cup Trophy and Defender that have been flawless, but that hasn't always been the case.

January 12, 2021, 04:11 AM

Scurvy

Considering Czechia is one of the few countries trying to expand gun rights for their citizens, I am 100% on board with this.

January 12, 2021, 04:23 AM

HK Ag

To be successful they need to move to a right to work state where the unions can’t strangle and bleed out margin and hence innovation.
We need a healthy firearms industry in this country. The Colt brand like Winchester is America to most non gun owning Americans and the world.
CZ products are world class I wish them success. Move Colt to Texas is my hope, Texas still loves gun culture and rugged individualism.

HK Ag

January 12, 2021, 06:16 AM

Fredward

I have to disagree about Colt's quality. From what I've seen of their recent revolvers, they're pretty much overpriced and frankly, shit. I was VERY unimpressed with a Python arriving missing a screw, and the wonky sights and finish on a few of the smaller revolvers I've seen. Given a choice these days, I'd say Taurus revolvers were better made.

January 12, 2021, 11:29 AM

Chris42

One of the details making Colt attractive is that the structure for govt contracts is already in place - brick and mortar facilities stateside.

Remember when Beretta got the contract for the M9 - one requirement was they be built here.

Smart move by CZ - everything is already here. And management has their heart/focus in the right place. Not a bunch of investors that know nothing about firearms wanting to make a buck.

January 12, 2021, 11:33 AM

Scuba Steve Sig

Sounds good to me, I have one of the new Colt Pythons, the rear sight wiggles all over and is airsoft level rinky-dink.

January 12, 2021, 11:33 AM

Aglifter

A) I'm guessing Dan Wesson 1911s and Revolvers, are about to become Colts - probably a great idea.

B) Its a bit sad to see Colt become foreign owned, but CZ has been doing great stuff, so I think they'll do a good job, if they can get out from under.

Offer to move to some small TX Hill Country town, or MT town, if they rename themselves Colt, and I'm sure it will work well.