Colt / CZ Buys Sellier & Bellot
Posted by shooting.com.au on
Prague/Uhersky Brod, South Moravia, Dec 18 (CTK) - Colt CZ Group SE (Colt CZ) executed an agreement with CBC Europe S.a r.l. (CBC) to purchase 100 percent interest in Sellier & Bellot for the combination of the cash consideration in the amount of USD350m (over Kc7.8bn) and a new issue of Colt CZ common stock, Colt CZ said.
This will lead to a 27-28 percent CBC's stake in the share capital of Colt CZ Group post transaction, Colt CZ representatives told CTK in a press release today.
CBC's final stake in Colt CZ will be determined depending on this year's audited financial results of both companies.
Financing for the acquisition is planned to be a combination of cash and debt financing, Colt CZ said. The transaction is subject to regulatory approvals in various countries and is expected to close in the first half of next year
Shares in Colt CZ on the Prague Stock Exchange increased by 1.16 percent to Kc524 per unit this morning, the bourse said on its website.
"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," said Fabio Mazzaro, CFO of CBC Global Ammunition LLC.
"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," said Mazzaro.
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