In May, an arms manufacturer in the Czech Republic bought Colt Holding Company for $ 222 million.
The company, Ceska Zbrojovka Group, is hoping the Colt acquisition and branding will provide a better position in the gun market globally – and even compete for some US military contracts.
CZG didn’t just buy the Colt name; the deal came with factories in the United States and Canada. Until recently, the company’s production was mainly operated in the Czech Republic. However, this new North American footprint satisfies the US military’s “Buy in America” requirement, and CZG believes it could lead to big business.
CZG hopes to more than double the size of the combined companies in just a few short years, which would put it in the same league as Smith & Wesson, which achieved $ 1.1 billion in revenue, according to a new Reuters report. Last year. The other firearms leader, Sturm, Ruger & Company, had revenue of around $ 569 million in 2020.
Colt has been around for approximately 175 years and is not only a supplier to the United States Army, but the exclusive supplier to the Canadian Army. Colt had been a key US military supplier until 2013 when he lost the contract to supply the M4 rifle due to reliability issues. The M4 is the successor to the M16, but soldiers said the M4 will perform poorly and get stuck in dusty environments.
Prior to the acquisition, approximately 66% of CZG’s sales originated in the United States, primarily through transactions with local law enforcement and private citizens. To increase sales, CZG plans to introduce and produce new non-Colt products in the United States and to upgrade Colt’s main plant in West Hartford, Connecticut.
The company now has around 2,000 employees in Canada, the Czech Republic, Germany and the United States.