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.”
“Assuming achievement of these contingencies, the closing of the transaction would be subject to regulatory approval.” CZ added that while they have made “significant progress” in the agreement, the buyout will depend on the results of their full assessment of Colt’s capabilities and debts.
See Also: Colt Responds to Concerns Over Its Decision to Halt Production of Rifles for Consumer Market
Although gun sales in the U.S. have steadily increased over the past decade — and are currently booming — Colt’s debts have been a serious problem that the company has not been able to shake leading to bankruptcy and restructuring following the loss of key military contracts.
Things couldn’t be more different for CZ and it’s subsidiaries. The company has kept up with market demands, supplying customers with an increasingly wide variety of new and innovative designs while expanding their business at the same time.
Colt and CZ have collaborated in the past. In the late ’90s, Colt turned to CZ to develop a pistol based on CZ designs with the look and feel of a 1911, chambered in .40 S&W for police contracts. The deal didn’t go far but then that agreement is nothing like what CZ and Colt are trying now.
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.
In any case, time will tell how this plays out. If the deal is approved, we can hope to see success in Colt’s future, and we might even get some more collaborations between the two companies.
If Alzheimer’s and Chief Biden bans the import of firearms then this is truly a great move by CZ.
What do you expect? 90% of our own Govt. is on board to selling the US out to China for the corrupt traitors own personal gain. They are pushing hard for globalism and why they want Trump out.
In the current political environment, they should be able to purchase Colt at garage sale prices, if at all. Why would investors want to buy a firearms company in Connecticut??? Maybe Hunter Biden can rescue the deal!
Real patriots should support the American manufacturers — a few good ones are still with us; for now.
The Pres. and VP’s of Colt in USA will prolly stay on the payroll at reduced pay and all other workers and buildings will be GONE !!!
As a manufacturing engineer, I know most guns are vastly overpriced compared to what it costs to make them…
As far as I am concerned Colt shot themselves in the foot when they caved to the anti gunners, and stopped selling handguns to the everyday man! Every dealer that USED to sell colts in my area stopped at that time, and never took them back! No one misses them.
Now with not selling their rifles to us anymore…and the lousy quality they are spitting out the “NEW” pythons with, for ONLY $1500+..I won’t miss them!
I own several old colts..I have no interest in the newer guns they build.
CZ makes quality firearms and I’m sure they will carry on that tradition here in West Hartford ! As a authorized dealer , I’ve found it almost impossible to order for my customers arms that are listed in their catalogs !! Good luck CZ ! Don’t disappoint me !!
In my opinion this would totally suck ! I am a buy American guy. Browning, and Winchester are now Browning, and Winchester in name only . Remington is in the process of being broken up, and the way I understand it, ammunition could possibly be the only thing left with the Remington name on it. H&R, Marlin, Bushmaster, have been divied up. Some of the companies formerly under the Remington umbrella have been bought by Ruger, and as such are at least, still American. American made hunting optics are also mostly made offshore. Even an iconic American classic like Burris has offshored all but the most expensive of their scopes. Leuplod is the only company that still manufactures 100% of their lineup here. I am also a fisherman. Have you ever tried to buy American made fishing gear ? Penn is about the only American manufacturer of fishing equipment left, and you have to be careful even with that iconic name as production of some of their spinning reels have been offshored. All in all with every iconic American brand that is sold to a foreign company makes “We the People of the United States of America” are poorer, and less secure. Proof ? How about the shortage of PPE at the beginning of the COVID pandemic. China had the market cornered, and what they did not control through production being moved there, they bought up. The loss of manufacturing in this country is a national catastrophe, and needs to be addressed. Unfortunately, with Joe, and Hunter Biden at the reigns, I don’t see this ever being addressed.
I could not agree with you more. We (USA) have offshored our means of production (steel, Al, plant capacity, distribution) into the hands of our sworn enemies. If you think the Chinese are on our side, think again. I’ve Chinese in-laws…in 1995 they asked me what would the USA do “if” China invaded Taiwan. Five years later they asked me what would the USA do “when” China invades Taiwan. Both times I merely stated that I hoped that they love their children as much as we do ours.
When war begins we will not have the capacity to arm without the likes of domestic manufacturing such as Singer, Westinghouse, GM, etc., as we did in WWII. Even that delayed ramp up was extremely costly.
Buyer beware…China holds much of the USA’s debt ($27 Trillion USD). The interest alone can pay for their annual military costs. If that doesn’t scare you then you are not paying attention.
To those of you that say “If I can find an American gun manufactured in the US, I’ll buy it!”I guess Henry Repeating Arms will be doing a phenomenal business this year. Henry quality and precision are unmatched, they are affordable and they are MADE IN AMERICA……..or not at all.
Ruger also American Made.
Of all the gun companies I have had dealings with their customer service department there have been none so infuriating as Colt. Barrels screwed in 2-5* out of alignment, on $12-1500 guns, timing that goes badly array in a box of ammo or less and all I ever got was a highly extended single middle digit. CZ knows how to make fine firearms! I have owned their rifles, pistols and shotguns and never once have I had a product failure of any sort. Colt has gotten fat and lazy over the years and it would appear as though CZ has the cure. I expect that it will be a painful first couple of years for Colt under CZ, but if they can make it past that, things should go well.
CZ Scorpion is the best PDW bar none.
That is just your opinion. Nothing more. If it fits your needs fine, it’s the best for you. It certainly doesn’t fit the idea or needs of most people.
And another opinion by a self made ‘expert’. The ‘Best’ PDW is the one you have with you, or are good with.
Now you have my ‘expert’ opinion.
And neither one bears any weight in the real world.
Holy crap guys, take a breath and relax! Gun guys have always said this or that is the best. It’s part of the fun. Jumping down a guys lthroat because he thinks it is the best make you look like asses!
I think people are just pissed about what they see in America being destroyed before our eyes. The corrupt Traitors in Wash. first made it hard to run a bidness, then shutdown small biz because of overrated China virus. Notice how big stores and bidnesses were allowed to stay open but small mom and pop bidnesses were closed. Its to destroy the middle class. Trump was the only one fighting this sh!t then they cheated with voter fraud and our own state, Local and federal judges turned a blind eye and not even look at the fraud. All corrupt bought and paid for Traitors. And now Colt wants to sellout to globalism.
This is what always happens when the “bean counters” take over a company from those with a passion for the product/service.
It is hard for dealers to do business with Colt. Colt does not offer a full line top to bottom. Colt has excellent customer service which is costly. They deal with a lot of issues they shouldn’t. Colt will still be Colt regardless of who owns the company. With CZ as owners top quality will cease but original Colts will go up in value. From now on when you see a Colt will you really see a CZ like looking at a Jeep do you see a Fiat. Hard to say but many will.
If you think quality will go down with CZ taking over Colt then you haven’t used or owned a CZ, they make one of the finest weapons in the world. I’ve owned and own many and they are top of the line. I own a colt and have owned many over the years. MAybe Colt will get back to where it used to be with CZ’s help.
Mixed feelings.
On the one hand its sad to see another American company being possibly bought out by a foreign firm.
On the other hand I love CZ and its one of the few foreign firms I actually don’t mind potentially coming here. CZ isn’t of the mindset of taking over our values and way of life. They just want to make quality firearms so all folks may enjoy them.
I’m sure they are hedging their bets with the upcoming political climate that they need a foothold here to make CZ products on shore instead of off shore. With the possibility of future importation restrictions it makes sense. Not to bring the politics into it but we all know it does play a significant role here.
Also if Colt was going to fall anyway and someone can continue the legacy so be it. It could be a much worse company than CZ. Like anything in these types of arrangements, the originals will sky rocket. The same will apply to CZ products of course as folks will swear that USA made CZs are’t the same as an original Czhech one. YMMV
If I could get a CZ-75 with Colt bluing and a Colt pony stamped on it? Yeah! Sign me up!
Mismanagement and greed – the very same attributes that have infested the Democrats holding office. It’s the mentality that says “I’m getting my share – to hell with the company/nation..”
Mismanagement and greed – the very same attributes that have infested the Democrats holding office – Says the man that watched “W” and his cohorts charge up the nations credit cards, stocks, and oil profits, then skip town. The article talked about a potential save for the Colt brand. We’d welcome a CZ/Colt factory in Utah – and provide a quality workforce and an environment/laws that values and fosters a quality product.
Bad management has destroyed many companies. The shooting sports have been hit especially hard in recent years. It looked as though the Trump administration was going to have a reviving impact on domestic firearms manufacture. Apparently not.
Better a foreign owned Colt, still made in the US, than no Colt at all. Mismanagement, debt, and Union pensions kill another American company.
Amazing. Business schools should use Colt as an example of what to do if you want to kill your business. In the US we have had the hottest market in the history of mankind for literally decades and yet, they still manage to go bankrupt. Sounds like our government.
sounds like too many fingers in the pie……
A lot if not most of my favorite guns I own are Colts. But let’s face it, as a company Colt Firearms has been garbage for years full of arrogance and even disdain for the private gun market while they existed off military contracts.
I bought my first CZs a few years ago and absolutely love them and the company. I hate to see yet another historic gun mfg fall into foreign hands as well. But the current American ownership leaves a lot to be desired and at least we know CZ is a quality gun company not just a group of investors that don’t care about firearms looking to make a profit no matter how much they have to lessen the quality of their guns (looking at you Remington.)
I HAVE A CZ 47 308. ANY BODY KNOW IT IS WORTH?
It wouldn’t be a .380 if it a CZ 47. .25ACP or 6.35mm. Maybe $200 depending on condition. Firing pins were pretty brittle in those so might want to check that.
It is strange to me Colt halts sales to the citizens of the united states claiming the market is saturated an they don’t want to compete with the other suppliers, then this article says they have lost many of there government contracts, now with the market booming they need to sell the company off to CZ. I agree with the others that it is a shame that they are selling out however it appears they did it to themselves. I hope CZ continues the tradition.
First of all, I own a CZ SP and it is one of the best shooters out of the box that I have seen. I just don’t like the idea of a foreign company taking over an American icon company once again. It’s a fine example that they have figured out how to lower cost and manufacture a quality product. We Americans need to get it together before we are completely owned by other countries. Show me a quality American made firearm and I will buy it.
Unfortunately the main issue is debt. We can thank the Unions for driving successful US business into that hole. and mismanagement/greed through the years.
Other companies have moved from union ran states to business-friendly right to work states. Nothing keeping Colt in CT. Look at the number of cars being made in the SE as proof of that.
Look at how many companies are leaving CA and moving to TX. When you pay a worker in Detroit $65/hour to turn a screw, things can only go one way.
It appears to me that another American Gun Dynasty is again going into foreign hands like Winchester, Dan Wesson, and now Colt. It is a shame that Sam Colt’s legacy could not be the innovator which he was that made the Colt name what it is. Then I have to think how the cost of Colts will now double or triple as the Winchester, and Dan Wesson firearms have, not that colt was ever inexpensive, but now it will become even harder for hard working Americans to save up in order to own a “real” Colt. I will mourn the loss of American gun manufactures who are forced to sell out to foreign companies because of mismanagement.
This is a great development. Colt was stale and going down fast. CZ is a great company that will give us the opportunity to have both brands more accessible in the USA
Is it really mismanagement? I feel that’s a hard line to take. I’d say it’s the over regulation and taxation, especially with a company headquartered in connecticut, the constipation state. Along with foreign manufacturers being granted access to the largest market for firearms in the world, while American manufacturers not being allowed to sell in the same home Country as their competitors! After all, owning a firearm is only really granted here in America! I’m sure you can’t buy a firearm, never mind a handgun or assault rifle, as a civilian citizen in most County’s! So any foreign competitors can freely sell to Americans in America, but not in their own homelands? Almost as if it was planned that way! That my friends is why I will NEVER buy a foreign manufactured firearm, car, truck, motorcycle, tools or anything else I can find an American made alternative!! That is why I don’t buy foreign if at all possible! It’s exactly the same on the world market, that American manufactured products, must compete on an unleveled playing field! It’s time ALL American consumers start buying American made products!!!
U R so right. unfortunately things are going the Democratic way from now on.
So Adios America as you knew it😡
Enjoy riding your horse (and buggy) for transportation… Or continue to do the head fake on part origins.
You can have the best of both worlds. Top design and reliability of a foreign car, but made in a US factory like my Sequoia.
I have several CZ rifles and love them, the best factory trigger on a rifle I’ve ever had, I think it’ll be a good deal for Colt.
So, For all intended purposes for this transaction of CZ purchasing Colt Manufacturing Company, The Present and Past Colt Guns and Rifles will be Untouchable to own or purchase at an affordable Price!
Of course, There’s “Auction Arms,” or other Third Party Gun Dealers that I’ll have to be resourceful to seek.
I’ m saddened by what’s going to happen to an American Iconic Historical Company, Colt Manufacturing, is going to be Swallowed Up by a Foreign European Entity!
I hope they don’t decide to close Colt down. Like they did a few years ago with S&W was bought out by a foreign company.
It may very well be. I’ve been with American companys who were taken over by foreign firms. Their bottom line is to get the American company’s customer data base, then close up the company. Bad practice and the Gov’t doesn’t care.
I doubt that CZ is going to the trouble of buying Colt simply to get its customer database. The problem is that Colt now doesn’t have enojugh customers. Further, Colt doesn’t have any valuable patents (AFAIK) now that their 1911 and AR-15 patents have expired. I am waiting to see CZ’s plans for the Colt products. CZ already has the Dan Wesson revolver line and it is difficult to compete against S&W and Ruger in the revolver market. I’m not sure if Colt has anything to offer beyond AR-15 pattern rifles, 1911s, and their reimagined revolvers.
Who is “they”? Who “closed down” S & W?