Colt, one of the oldest and most venerable names in US firearms manufacturing, may be on the verge of being acquired by one of Europe’s leading brands, Česká Zbrojovka, better known as CZ, which is known for its classic CZ 75 pistols. The details of a possible acquisition have yet to be made official.
In November, CZ informed its investors via a letter of intent that the company was launching efforts to acquire "100% of the outstanding equity interest in Colt Holding LLC, a Delaware entity and indirect owner of the Colt Manufacturing Company LLC operating business." The deal was anticipated to be "ready for execution by the end of 2020." Last week, CZ issued a statement to its investors giving an update on the progress of the acquisition, saying 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 Firearm Blog website reported that it would appear that an agreement in principle has been reached but key negotiations on certain elements continue. No official announcement has been made by either company.
Colt, like a number of other US firearms manufacturers, has struggled financially in recent years. The company filed for bankruptcy in the summer of 2015 but emerged from Chapter 11 before the end of the year. Colt is believed to currently employ over 700 staff and has recently been focused on military contracts for the US government.