CZ in negotiations to buy Colt Firearms

[Dizzipator]

From the Hartford Courant

Gun manufacturer Colt, an American legend and Connecticut fixture for nearly 175 years, could come under European ownership in a deal being negotiated with a Czech firearms company.

Česká zbrojovka Group SE, or CZG, which is negotiating to purchase Colt Holding Co., said it has reached agreement on the outlines of a deal with the West Hartford gun manufacturer.


A transaction for 100% of the outstanding equity interest in Colt Holding Co. is not certain, it said. The two companies have agreed to extend to the end of January the review required for due diligence and could approve a deal by then, CZG said.

Terms were not disclosed.

https://www.courant.com/business/hc-biz-colt-sale-20210112-rwagtjddtbbl3eynewqh7rwy4e-story.html

 

[rc]

Well other than not being U.S. owned that would be exciting. CZ puts a lot of pride in their line and Colt under CZ would be phenomenal just like Ruger buying Marlin. CZ is already are building 1911s and Revolvers with Dan Wesson.

 

[FITASC]

But it does give CZ access to government contract possibilities as the US wants arms dealers to have manufacturing in this country.

 

[Scorch]

It's about time somebody who wants to make guns took over Colt. They've been in limbo ever since they told us they didn't need civilian customers, then FN got the M16/M4 contracts in the late 1990s and they just went into death spasms and begged us to buy their guns.

 

[rc]

Government contracts... now that is an angle I hadn't considered but it is a very good point.

 

[Pathfinder45]

Maybe they can figure out how to make the best Single Action Army revolver at a more affordable price....
Maybe even bring back the Colt Woodsman....

 

[chris in va]

Odd timing as AR’s are about to be banned. Now if we can just get S&B to export their primers again.

 

[FrankenMauser]

It's about time somebody who wants to make guns took over Colt.

Let me fix that for you:
"It is about time that someone tries to make colt functional and relevant for the first time."

 

[Pond James Pond]

But it does give CZ access to government contract possibilities as the US wants arms dealers to have manufacturing in this country.

Forgive my ignorance, but how is that different from Beretta winning the sidearm contract with the M9?

In addition, can US companies not petition for government contracts in foreign countries?

And Czech Republic has been in NATO for almost 21 years so I don't see great national security issues for the US.

 

[Tony Z]

As a CZ fan, I say great news!

 

[ballardw]

At least CZ already knows how to make 1911's.

 

[DMK]

Well, CZ is buying Colt is certainly a lot better news than if Colt was buying CZ!

 

[FITASC]

Quote:
But it does give CZ access to government contract possibilities as the US wants arms dealers to have manufacturing in this country.
Forgive my ignorance, but how is that different from Beretta winning the sidearm contract with the M9?



In addition, can US companies not petition for government contracts in foreign countries?

Why Beretta opened their manufacturing facility in Maryland and SIG did in NH; US government requirement to obtain military contracts.

I am sure US companies can try to obtain contracts- outside of ARs, how many do you know of as far as small arms are concerned?

 

[KyJim]

CZ buying Colt is good news for the Colt brand. They know how to make guns. I just wonder if they will keep the Colt and Dan Wesson 1911s separate lines and brands.

 

[Pond James Pond]

Why Beretta opened their manufacturing facility in Maryland and SIG did in NH; US government requirement to obtain military contracts.

I am sure US companies can try to obtain contracts- outside of ARs, how many do you know of as far as small arms are concerned?

My point was: why the concern over CZ now being able to make offers on US military contracts?

More specifically, why the concern over CZ but not Beretta and Sig?

Indeed, CZ's entire raison d'etre was to make military firearms from the outset.

As for how many US military contracts there are, I don't know but nor it is relevant to this point: US companies can make offers on foreign contracts.

Whether they choose to is a different matter.

 

[44 AMP]

Could be a good thing, unless the people who own CZ allow Colt to finish running itself into the ground and completely failing thereby reducing competition.

I won't pretend to understand high finance big business in these matters, but didn't the people who bought Remington essentially use it to pocket a bunch of money while destroying REM as a going concern??

 

[HighDesert]

It could be good, but I’ve seen so many mergers and acquisitions of failing companies, where the winning company takes on the policies and attitudes of the failing company and destroys themselves. My fear is, colt will be like the cancer that takes out CZ. I don’t share in the excitement of the news.

 

[DMK]

CZ buying Colt is good news for the Colt brand. They know how to make guns. I just wonder if they will keep the Colt and Dan Wesson 1911s separate lines and brands.

And so does CZ!

Assuming CZ gets deeply involved with running Colt, This could only improve Colt's QC and marketing.

I think they would keep the brands as separate identities, at least for product lines and marketing. They always did that well with Dan Wesson.

It could be good, but I’ve seen so many mergers and acquisitions of failing companies, where the winning company takes on the policies and attitudes of the failing company and destroys themselves. My fear is, colt will be like the cancer that takes out CZ. I don’t share in the excitement of the news.

I don't see this happening with CZ. They may take a hands off with Colt and not interfere with their historic stupidity, but I don't see them allowing Colt to change CZ.

CZ has had a very good formula for manufacturing and selling guns for a very long time. There is nothing Colt can teach them. I suspect, along with others here, that they are looking at both the US military contracts and the US heritage that Colt brings.

 

[DMK]

Could be a good thing, unless the people who own CZ allow Colt to finish running itself into the ground and completely failing thereby reducing competition.

I won't pretend to understand high finance big business in these matters, but didn't the people who bought Remington essentially use it to pocket a bunch of money while destroying REM as a going concern??

Cerberus was not a gun company. They were only interested in financial investment.

CZ makes guns and has had a long history of doing so. They have at least as much history in Europe as Colt does here.

This would be the equivalent of S&W buying FN. Not likely that they would be doing it to put them out of business.

 

[natman]

Cerberus was not a gun company. They were only interested in financial investment.

Allow me to suggest an edit:

Cerberus was not a gun company. They were only interested in financial piracy.