CZ To Purchase Colt?
BY Herschel Smith
3 years, 10 months ago
From reader Ned, CZ may be looking to purchase Colt.
The parent companies of both Colt and CZ have been negotiating a deal that may make firearms history. CZ is looking to buy out Colt following years of financial trouble for the iconic American firearms company.
While some people may not like the idea of a Czech firm swooping in to buy up one of the most storied manufacturers in American history, gun enthusiasts might see this in a completely different light. CZ might not be a household name like Colt, but gun owners everywhere know about CZ.
According to the CZ Group, the two have agreed to initial terms and CZ is now performing due diligence work before finalizing the deal. CZ expects to finish the due diligence period by the end of January 2021.
“The parties have reached an agreement in principle on key commercial parameters of the transaction,” said the CZ Group in a statement (.pdf). “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.”
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The question remains, what will a CZ-operated Colt’s Manufacturing look like? Hopefully a lot like Dan Wesson. CZ acquired Dan Wesson Firearms in 2005 in a move that revitalized the American company while preserving its legacy.
This is an interesting move, and not one I quite understand, frankly. I’m not sure what the business model will look like. Colt, like Remington, may be irretrievably lost.
For instance, has CZ considered that it may be impossible to conduct business in a financially responsible manner in a Northern state, combined with union labor? Why wouldn’t they move Colt to a right-to-work state? Or maybe they are considering that.
I’m also not quite sure what it means to purchase Colt? Does this mean purchasing the rights to designs, branding, machinery, people-equity and intellectual property? Also consider that any purchase of a company also means responsibility for debt.
CZ is making some fine equipment today. I’d hate to see the brand sullied by failure to turn Colt around.
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On January 20, 2021 at 11:10 pm, Fred said:
The use of the word; acquisition, in America, usually means full purchase of the whole sha-bang.
On January 20, 2021 at 11:34 pm, George 1 said:
I would have to question the move as well. CZ already has a great line of 1911s in Dan Wesson. Do they want to gain the Python and King Cobra lines? They could just expand the Dan Wesson Revolver models. To gain military M4 contracts? That seems a risky move to me.
CZ would definitely have to move the manufacturing facilities. The juice doesn’t appear to be worth the squeeze to me.
On January 21, 2021 at 1:27 am, Georgiaboy61 said:
Maybe CZ want the intellectual property rights and patents held by Colt, more than anything else.
It may be germane to note that in the present day, in contrast to many nations of the Anglophone world and western/northern Europe, the Czechs and their fellow members of the Visegrad Four (Hungary, Slovakia and Poland) are expanding the civil rights of their citizens, including those for firearm ownership and possession.
The Visegrad Four have all been under the communist boot most-recently, and before that, the national socialist (Nazi) boot, and prior to that, further back in history, the Islamic boot. Which is to say that they have either been threatened or actually conquered by some of the most-brutal and ruthless people in history.
For this reason, they take their firearms seriously over there.
The Czech arms industry has been renowned for its quality, innovation and products, going back to well before the Second World War. That is one reason why Hitler wanted to annex Czechoslovakia so badly; he wanted the arms factories (and automobile factories, et al.) of firms such as Škoda and many others. And as soon as the Nazis seized Czechoslovakia, they began turning out arms for the Wehrmacht (Heer, Kriegsmarine, Luftwaffe, etc.).
Czech arms development also influenced other nations prior to and during WWII. The famous British BREN gun was a modified version of the Czech ZB-26/vz. 26 light machine gun. The name “BREN” came from an amalgam of the first two letters of “Brno” – after the Brno arms factory – and “Enfield” after the British small-arms firm. The Japanese Type 96LMG is also based upon the Czech design.
On January 21, 2021 at 10:04 am, Chris Mallory said:
Would a yankee state with unions really be that different than working under EU rules?
But CZ is building a 73 acre manufacturing plant in Little Rock. They have had an assembly plant in Kansas City. Surprisingly, their Dan Wesson Division is still headquartered in New York.
On January 21, 2021 at 10:20 am, Johno said:
Will 1911s and other models now be marked as CZolt?
On January 21, 2021 at 12:36 pm, Don Curton said:
I would think intellectual property and branding are the only things of value in this situation. And even there branding is a declining value proposition since every new gun by Colt/CZ will face the inevitably comments about how they’re not as good as the old Colts.
I could see Colt remade as a boutique gun manufacturing outfit, producing limited numbers of high end single and double action revolvers from their history. I’m quite happy with my Italian replicas, but given a chance to get the same quality single action with a real Colt stamp on it might entice me to spend a few extra dollars. But that market is already saturated with low cost alternatives and Colt has already proven they can’t compete on costs in the AR marketplace.
On January 21, 2021 at 6:21 pm, =TW= said:
CZ already has a strong product line. It might be interesting to see what they can do with Colt.
Meanwhile, I’ll be keeping an eye on Ruger’s progress with Marlin.
On January 21, 2021 at 7:40 pm, bobdog said:
I would rather see CZ buy Colt than the alternatives.
1. Colt goes out of business
2. Colt gets bought by Gordon Gecko strip mining types
On January 21, 2021 at 9:51 pm, JB said:
Wise move by CZ and Colt. Under Bidens Communist regime the firearm industry is going to face great difficulty. Bidens rats will use every federal agency to harass and tie them up in endless costly lawsuits, IRS investigations, OSHA raids, and more. CZ can pull all manufacturing to the homeland if need be. The US is likely the biggest gun market on earth and the communists want to end that.
On January 22, 2021 at 4:22 am, Georgiaboy61 said:
@ JB
Re: “CZ can pull all manufacturing to the homeland if need be. The US is likely the biggest gun market on earth and the communists want to end that.”
The U.S. – the Founder’s republic – still has friends overseas, and the Czechs are likely part of that group. Team Liberty ought to use those allies as much as possible. If necessary, as a means of protecting essential goods and services until such time as they can be repatriated. Having them own Colt may serve that end.
On January 22, 2021 at 1:03 pm, Sanders said:
I’d love to have a CZ-75 with a Royal Colt Bluing job and a rampant pony stamp on it.