More acquisition maneuvers in these last days of 2023. We already reported about the acquisition of Italian company Armi Perazzi by Czech CSG Group, Still remaining in the Czech Republic, now it's the time for the traditional firearms ammunition manufacturer Sellier & Bellot to be acquired by Prague-based Colt CZ Group SE. A press release in fact announces that on December 18, 2023, the latter signed an agreement with CBC Europe S.à r.l., the parent company of Sellier & Bellot a.s.
In detail, the acquisition will be financed through a combination of the company's existing cash resources and debt financing: Colt CZ shall acquire 100% of shares of Sellier & Bellot for the amount of $350 million and a new issue of Colt CZ common stock, leading to a 27–28% CBC’s stake in the share capital of Colt CZ Group post transaction. The final number of CBC shareholding in Colt CZ Group will be determined depending on the audited financial results of both companies for the year 2023. The transaction is subject to regulatory approval in various countries and is expected to close in the first half of 2024.
The large perspective of Colt CZ Group's acquisition of Sellier & Bellot: CBC to become second largest shareholder
“We are proud to welcome one of the oldest and most important producers of small caliber ammunition, Sellier & Bellot, to Colt CZ Group. This acquisition fits into our long-term strategy to expand not only in our core segment of small arms, but also in related areas, with ammunition being a natural complement to our products. We look forward to working with the management of Sellier & Bellot, its employees, partners, and customers, as well as the new opportunities that the connection with Sellier & Bellot will undoubtedly bring to our entire Group,” said Jan Drahota, CEO and Chairman of the Board of Directors of Colt CZ Group. “We are pleased that CBC believes in our story and our strategy and is to become the second largest shareholder of Colt CZ Group,” he added.
Fabio Mazzaro, CFO of CBC Global Ammunition LLC, commented: “The successful contribution of one of CBC Global Ammunition Group’s flagship companies to Colt CZ Group in exchange for a significant shareholding marks the starting point of an impactful strategic collaboration. We are convinced of Colt CZ management’s long-term vision and believe the transaction will lead to remarkable value creation between the ammunition and firearms segments. Our subsidiary Magtech Ammunition will continue to serve as the dedicated sales entity for Sellier & Bellot products in the United States. This ensures exceptional customer service and reliable distribution to further preserve Sellier & Bellot’s trajectory of growth in the most relevant ammunition market”.
“I am delighted that Sellier & Bellot, after many successful years in the CBC Group, will become part of Colt CZ Group, which has Czech roots and, at the same time, an international presence. We are convinced that the connection with Colt CZ Group will bring a great future for Sellier & Bellot. We will continue to build our traditional brand and work closely with the Colt CZ Group team in developing our products to deliver the best solutions to our customers,” said Radek Musil, CEO of Sellier & Bellot, who also assures that the change of shareholders will not impact the company vision and that the current S&B management remains unchanged.
More info about Colt CZ Group: https://www.coltczgroup.com/en/
