The Colt CZ Group has announced a deal to acquire Czech ammunition manufacturer Sellier & Bellot. This marks Colt CZ Group’s latest acquisition and their continued expansion in the small arms sector. The deal is worth more than $350 million and sees Colt CZ Group acquire the ammunition manufacturer in full while Sellier & Bellot’s parent company CBC Europe will take a 27% stake in Colt CZ Group. CBC bought Sellier & Bellot in 2009.

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Here’s Colt CZ Group’s announcement in full:

Prague, December 18, 2023  – Colt CZ Group SE (“Colt CZ”, “Group” or “Company”) hereby announces that on December 18, 2023 it entered into an agreement with CBC Europe S.à rl (“CBC”) to purchase 100% share in Sellier & Bellot.

Colt CZ will acquire 100% of the shares of Sellier & Bellot as for a combination of a cash consideration of US$350 million and through a new issue of ordinary shares of Colt CZ, which will lead to the acquisition of CBC’s share of the share capital of Colt CZ Group in the amount of approximately 27-28% after the end of the transaction. The final share of CBC in Colt CZ Group will be determined depending on the audited economic results of both companies for the year 2023. The acquisition will be financed by a combination of the Company’s existing cash resources and debt financing. The transaction is subject to regulatory approvals in various countries, which are expected in the first half of 2024.

“We are proud to welcome Sellier & Bellot, one of the oldest and most important manufacturers of small caliber ammunition, to the Colt CZ Group. The acquisition of Sellier & Bellot fits into our long-term strategy to expand not only in our core small arms segment, but also in related industries where ammunition is 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 to the new opportunities that the connection with Sellier & Bellot will undoubtedly bring to our entire Group,”  said  Jan Drahota, President and Chairman of the Board of Colt CZ Group . “We are pleased that CBC believes in our story and our strategy, and will become the second largest shareholder of Colt CZ Group,”  added  Jan Drahota .

“The successful entry of one of the flagships of the CBC Global Ammunition Group into the Colt CZ group in exchange for a significant equity stake represents the beginning of an important strategic cooperation. We are convinced of the long-term vision of the management of Colt CZ and believe that the transaction will lead to the creation of significant value between the ammunition and firearms segments. Our subsidiary Magtech Ammunition will continue to serve as the exclusive sales entity for Sellier & Bellot products in the United States. This will ensure unparalleled customer service and reliable distribution that will further sustain Sellier & Bellot’s growth trajectory in the most important ammunition market,”  says  Fabio Mazzaro, CFO of CBC Global Ammunition LLC .

“I am happy that Sellier & Bellot, after many successful years in the CBC group, will become part of the Colt CZ Group, which has Czech roots and international scope at the same time. We are convinced that the connection with Colt CZ Group will bring Sellier & Bellot a great future. We will continue to build our traditional brand and work closely with the Colt CZ Group team to develop our products to deliver the best solutions to our customers,”  said  Radek Musil, CEO of Sellier & Bellot .

Sellier & Bellot is a traditional Czech manufacturer of ammunition and ranks among the oldest engineering companies in the Czech Republic and worldwide. The company’s products have been manufactured under the trademark since 1825. The company’s product portfolio includes a wide range of hunting and sporting ammunition and components for pistols and revolvers, rifles, shotguns and rimfire. Sellier & Bellot is also a major supplier of firearms ammunition to the military and armed services worldwide. The company has approximately 1600 employees and operates the main production plant in Vlašim in the Czech Republic.

CBC Global Ammunition LLC and CBC Europe S.à rl are holding entities for a group of companies that are internationally active in the ammunition sector: CBC Brazil, Magtech Ammunition, MEN, SinterFire, New Lachaussée and Fritz Werner. Together, this strategic alliance forms one of the largest ammunition corporations in the world with over 300 years of experience in the production of small and medium caliber ammunition.

Find the Colt CZ Group announcement here.

Sellier & Bellot also made a short statement on the deal:

We would like to inform you that in the last couple of days, an agreement has been concluded between our sole shareholder and Colt CZ Group SE on the purchase of 100% share in the company Sellier & Bellot.

Colt CZ Group SE includes many well-known brands, namely Colt, Česká Zbrojovka, Colt Canada or 4M Systems for instance. The group is one of the world’s leading manufacturer of firearms for hunting, sport shooting and personal defense as well as for military and law enforcement. Additionally, this acquisition is connecting together two brands with the longest history in our industry.