Colt CZ buys USA's Valley Steel Stamp for Kc1.3bn

Prague, June 17 (CTK) - Czech arms manufacturer Colt CZ Group SE (Colt CZ) has bought US firearm components manufacturer Valley Steel Stamp Inc. for USD59.5m (about Kc1.3bn), Colt CZ told CTK in a press release today.

The transaction was completed on Monday after being approved by the Committee on Foreign Investment in the United States (CFIUS).

Valley Steel Stamp has been a long-term supplier to Colt CZ Group in the United States. "With this acquisition, Colt CZ Group gains control of a reputable, high-quality precision machining company, that serves as a key supplier of revolver frames, cylinders, spare parts, and other firearm components for the commercial market,” said Colt CZ CEO Radek Musil. According to him, the acquisition will significantly strengthen the group’s engineering and manufacturing capabilities located in the United States and is expected to improve profit margins for its commercial market products.

VSS is headquartered in Greenfield, Massachusetts, and employs approximately 150 people. In 2024, VSS generated USD44.3m (Kc949m) in revenue from its firearms operations.

Valley Steel Stamp will continue to operate under its existing trade name. Operations unrelated to firearms production were excluded from the transaction and will continue independently under NE-XT, with their own trademark and brand name.

VSS long-time co-owner and CEO Steven K. Capshaw became CEO of Colt's Manufacturing Company on Monday. "With his extensive and longstanding experience in firearms engineering and manufacturing, I’m confident he will play a key role in shaping our strategy for the US commercial market. His leadership will be vital to launching new products and driving the next phase of growth for our US operations," Musil said.

Colt CZ reported record revenue of Kc5.512bn in the first quarter of this year. Revenue in the USA accounted for 43.7 percent of this.

In 2005, the largest Czech arms manufacturer, through its subsidiary CZ-USA, acquired control over US manufacturer of short firearms Dan Wesson. In May 2021, it completed the purchase of another US gun manufacturer, Colt Holding Company LLC (Colt).

Colt CZ is the world's leading manufacturer of small arms and ammunition for armed forces, personal defence, hunting, sport shooting and other commercial applications. It sells its products primarily under the Colt, CZ (Ceska zbrojovka), Colt Canada, Dan Wesson, Sellier & Bellot, swissAA, Spuhr and 4M Tactical brands.

The Colt CZ group is headquartered in the Czech Republic. It employs more than 3,200 people in its manufacturing plants in the Czech Republic, the USA, Canada, Sweden, Switzerland and Hungary. Since 2020, the group has been listed on the Prague Stock Exchange (BCPP), with Ceska zbrojovka Partners SE holding as the majority shareholder.

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