CZG - Ceská zbrojovka Group SE (SEP:CZG) agreed to acquire Colt Defense LLC for approximately $260 million on February 11, 2021. Under the terms, CZG shall acquire a 100% stake in Colt for upfront cash consideration of $220 million and the issuance of 1,098,620 shares of newly issued CZG common stock. The agreement also provides for potential earnout consideration of up to 1,098,620 shares of newly issued CZG common stock if defined EBITDA thresholds are achieved in years 2021 - 2023. Transaction includes acquisition of Colt's Manufacturing Company LLC as well as its Canadian subsidiary, Colt Canada Corporation. The acquisition is to be financed from the CZG's existing cash resources, including recent IPO proceeds, and from the contemplated bond issuance. The combined group will have revenues in excess of $500 million and presents a real small arms powerhouse. The transaction is subject to regulatory approval but is anticipated to close in the second quarter of 2021. Stephens Inc. acted as financial advisor to Colt Defense LLC. Michael N. Kandev, Gabriella Lombardi, Alexandria Pike, Sébastien Thériault, Charles Tingley, Léon H. Moubayed, Fotini Gagaoudakis, Badar Yasin, Steven Willard, Mathias Heilke and Pascale Nguyen of Davies Ward Phillips & Vineberg LLP acted as legal advisor to CZG - Ceská zbrojovka Group. Allen & Overy LLP acted as legal advisor to Colt Defense LLC. Tomas Skoumal of Baker & McKenzie s.r.o., advokatni kancelar acted as legal advisor to Baker & McKenzie s.r.o., advokatni kancelar.

CZG - Ceská zbrojovka Group SE (SEP:CZG) completed the acquisition of Colt Defense LLC on May 24, 2021. As of May 24, 2021, the transaction has secured all necessary regulatory approvals from the U.S. and Canadian authorities for the transaction.