Colt – The Iconic U.S. Firearms Company Bought By Czech Firearms Company Ceska Zbrojovka

The Colt, an American gun maker that helped develop revolvers in the 19th century and has since supplied the armed forces in the U.S. and other countries. One of the oldest gunmakers in the United States is being sold to an overseas competitor Ceska Zbrojovka.

It’s the end of an era for Colt, which was a key part of the Wild West days in the U.S. Its iconic single-action revolver was branded as “The Peacemaker” in the 1800s. The company has also manufactured guns for the military and law enforcement.

 

Colt has struggled as the firearm industry has grown and its design patents expired. It filed for bankruptcy in 2015, emerging the following year. And it has continued to lose market share as police switched to Glock weapons, which were cheaper, lighter, and held more ammunition. And Smith & Wesson has also grown to be a much larger competitor.

 

 

 “With this strategic move, CZG will acquire significant production capacity in the United States and Canada and substantially expand its global customer base,” the Czech company said. 

 

The deal is worth $220 million and 1,098,620 newly issued shares in Ceska Zbrojovka and is subject to approval by regulators. The Czech company said it expected the transaction to be completed in the second quarter of 2021.