Maggie’s CZ bought Colt!

[clcustom1911]

Yup. It happened. We'll see how everything goes.

It’s Official: CZ Buys Colt for $220m And Stock Shares

CZ buys Colt and the official announcement has been made. Colt Holding Company LLC announced that as of February 11, 2021, it executed a definitive agreement to be acquired by CZ.

www.internationalsportsman.com

 

[BullGear]

Doesn't really surprise me.

 

[Charger442]

Thats a sad day. another great american gun maker owned by an east european arms company.

 

[clcustom1911]

And I thought it was worth more than $220m.

 

[THEIS]

And I thought it was worth more than $220m.

Hi,

The Czechs thought so too...hence the stock percentages, lolololol

Now to see if Alice is going to scale Colt down to 3-4 product models and throw rest in a dark room to only be opened for entity writing million or more dollars in PO.

Scale down and Focus UP!!!

Sincerely,
Theis

 

[1stIDvet]

So my CZ is American now?

 

[Choid]

And I thought it was worth more than $220m.

Honestly, I think half of that or less is more reasonable.

If I were to game it out, Colt basically makes 1911s and mil spec ARs. I mean, they do make other things, but that is the main business. The value is really about 1) how much is the access to military contracts worth, assuming that Colt will still be seen as a preferred manufacturer, even though they are now a foreign company, and 2) how much is the Colt name worth is the consumer market. The business itself is basically shit because they can't make money given the union contracts. They have shown that time and again. There are some DW synergies, but DW makes a much better product, and probably has higher margins, so how much is it really worth to stamp Colt on one of their guns. Otherwise, I guess they are buying into the mid high cost AR range. Not sure that is a great idea. There is basically no intellectual property or differentiation, and it comes with those fucking union contracts.

 

[LeftyJason]

This shines some light on why they did it. Cz has no US manufacturing. That will give Cz Buy American Act compliance. Cz has no revolvers. Colt will only be made USA. There is more but this is tldr.

CZ BUYS COLT: An Exclusive Interview With Lubomir Kovarik - CZG

CZ BUYS COLT: An Exclusive Interview With Lubomir Kovarik - President CZG- So what dues it actually mean when we say CZ Buys Colt? TFB was lucky enough to have access to CZ Group's President and Chairman of the Board Lubomir Kovaik for an exclusive Q&A session more more details.

www.thefirearmblog.com

 

[Bigfatcock]

Tighten up slide to frame fit on the 1911

Bring back the 6920

make the SAA a production line revolver

Move to another state

 

[pmclaine]

Honestly, I think half of that or less is more reasonable.

If I were to game it out, Colt basically makes 1911s and mil spec ARs. I mean, they do make other things, but that is the main business. The value is really about 1) how much is the access to military contracts worth, assuming that Colt will still be seen as a preferred manufacturer, even though they are now a foreign company, and 2) how much is the Colt name worth is the consumer market. The business itself is basically shit because they can't make money given the union contracts. They have shown that time and again. There are some DW synergies, but DW makes a much better product, and probably has higher margins, so how much is it really worth to stamp Colt on one of their guns. Otherwise, I guess they are buying into the mid high cost AR range. Not sure that is a great idea. There is basically no intellectual property or differentiation, and it comes with those fucking union contracts.

I dont think they are making ARs now.....seems there new commercial releases are parts guns pretty much.

 

[pmclaine]

Tighten up slide to frame fit on the 1911

Bring back the 6920

make the SAA a production line revolver

Move to another state

I havent played with a newer 1911 but few years ago peeps on 1911 Forum were saying the present production was equal to, even better than the commercial models of the 20s and 30s......

 

[308pirate]

Cz has no US manufacturing...…………..

Yes, it does, in Kansas City. That's where a good portion of the P-10 Optic Ready models (and both that I have) are manufactured. Even the frames are molded in the US. It's easy to tell if you know what to look for.

Cz has no revolvers.

CZ has owned Dan Wesson for over a decade now. Even though their revolvers are discontinued, that doesn't mean they can't be made again.

 

[308pirate]

assuming that Colt will still be seen as a preferred manufacturer, even though they are now a foreign company

Foreign ownership is irrelevant if the US business unit is structured properly.

The US has a shitload of foreign companies supplying it with weapons and systems through US business units or JVs. Just a few off the top of my head

• BAE Systems
• Fincantieri
• Leonardo DRS
• Airbus
• FN Herstal
• Embraer

And before you go looking this shit up, none of that applies to foreign entities that are in one of the many lists maintained by DoC and DoS in relation to ITAR and EAR...…….

 

[308pirate]

Thats a sad day. another great american gun maker owned by an east european arms company.

Colt hasn't been great for a looooooong damned time.

I'd rather CZ (who actually gives a shit about making quality firearms) owns it and steers it than another lame-ass VC or PE firm full of asshole Ivy League MBAs who know nothing other than sucking value out, or worse yet the chinks.

 

[clcustom1911]

I havent played with a newer 1911 but few years ago peeps on 1911 Forum were saying the present production was equal to, even better than the commercial models of the 20s and 30s......

Correct. As far as parts interchangeability and metallurgy, leaps and bounds better than 100 years ago. Colt, in my opinion and experience, is the only manufacturer where you can get every single part from them, assemble everything, including sights, and it will reliably operate without needing all the "hand fitting" often associated with 1911's.

I'm a Springfield guy for factory pistols, but if you can get your hands on a plain Jane stock Colt 70 series, it'll be a rattle trap, but it'll be 100% reliable with pretty much all ammo and good quality magazines (Colt, Wilson, Tripp, Chip).

 

[MPrimo]

Scrap the Colt 1911 line and build more Dan Wessons! I know the reverse is more likely and the overall quality will be less but I can hope. I live in CT and know a lot of people that build components for Colt and some former Colt employees as well. They have been a shit show ... I hope this revives them in some way.

 

[Choid]

Foreign ownership is irrelevant if the US business unit is structured properly.

The US has a shitload of foreign companies supplying it with weapons and systems through US business units or JVs. Just a few off the top of my head

• BAE Systems
• Fincantieri
• Leonardo DRS
• Airbus
• FN Herstal
• Embraer

And before you go looking this shit up, none of that applies to foreign entities that are in one of the many lists maintained by DoC and DoS in relation to ITAR and EAR...…….

Correct, which is why I said preferred, and not eligible. It is also clear that, at least in small arms stuff, there is somewhat of a buddy system in the bidding, or else Sig is just really that much better at designing everything. Colt had it for a long time. I don't know of any of that goodwill follows them in an ownership change. I am just looking for something that makes any of this worthwhile to CZ...

 

[Choid]

I dont think they are making ARs now.....seems there new commercial releases are parts guns pretty much.

They claimed that they had to switch the AR production line over to mil contract stuff. No idea if that is true. Surely they retain the capacity to do so, but what is that really worth?

 

[Choid]

I havent played with a newer 1911 but few years ago peeps on 1911 Forum were saying the present production was equal to, even better than the commercial models of the 20s and 30s......

They are good, probably better than they have been in a while. They are not Dan Wesson quality, though. Not even close. The most valuable part of this deal is the ability to stamp Colt onto a Dan Wesson.

 

[Charger442]

They are good, probably better than they have been in a while. They are not Dan Wesson quality, though. Not even close. The most valuable part of this deal is the ability to stamp Colt onto a Dan Wesson.

Why would they do that? It would immediately devalue the gun. Dan Wesson pistols are worth more than Colts. The fear should be stamping Dan Wesson on the side of a meaty ogre Colt pistol

 

[308pirate]

Correct, which is why I said preferred, and not eligible. It is also clear that, at least in small arms stuff, there is somewhat of a buddy system in the bidding, or else Sig is just really that much better at designing everything. Colt had it for a long time. I don't know of any of that goodwill follows them in an ownership change. I am just looking for something that makes any of this worthwhile to CZ...

How much USG contract work have you ever managed?

 

[Choid]

How much USG contract work have you ever managed?

None, and I never implied I have.

I have spent a career valuing companies, though.

 

[pmclaine]

They claimed that they had to switch the AR production line over to mil contract stuff. No idea if that is true. Surely they retain the capacity to do so, but what is that really worth?

They lost their mil contract to FN seems they stopped commercial sales 3 years or so ago....cant remember to correlate it to any other than Trump came on board and the lack of panic pulled the floor out of a saturated market.....they couldnt command their high price without the panic.

I looked at buying a newer 6920 late summer...products were BO until about October. From what I see new ones are not like their old production that actually met a spec.

 

[LeftyJason]

Yes, it does, in Kansas City. That's where a good portion of the P-10 Optic Ready models (and both that I have) are manufactured. Even the frames are molded in the US. It's easy to tell if you know what to look for.



CZ has owned Dan Wesson for over a decade now. Even though their revolvers are discontinued, that doesn't mean they can't be made again.

I guess I didn't read it as well as I could've.

Quote from Ludomir Kovarik president of Cz group.
"CZ-USA mainly imports its products from the Group’s production facility in the Czech Republic. Following the regulatory approvals, Colt will become another subsidiary of CZG. CZG will gain production presence in the USA. CZG needs another strong production capacity next to its main production facility located in the Czech Republic to satisfy the high demand for our products."

 

[TurboTrout]

I can’t think of a new colt that I’ve had to check out at a gun shop / gun show over more than a few years.

It’s like that employee that always is late, does the very bare min at work and seems ambivalent about getting canned, colt had that vibe.

Hopefully it’s a change for the better as a potential customer, I’ve been much more interested in a few CZs as of late, so maybe it’s for the best.

 

[Choid]

Why would they do that? It would immediately devalue the gun. Dan Wesson pistols are worth more than Colts. The fear should be stamping Dan Wesson on the side of a meaty ogre Colt pistol

A Valor with those sweet ass Colt rollmarks would be a good seller.

They lost their mil contract to FN seems they stopped commercial sales 3 years or so ago....cant remember to correlate it to any other than Trump came on board and the lack of panic pulled the floor out of a saturated market.....they couldnt command their high price without the panic.

I looked at buying a newer 6920 late summer...products were BO until about October. From what I see new ones are not like their old production that actually met a spec.

I'd imagine that they retained the production capacity. Of course, I don't know that, but it would be relatively costless to do so. I think they tried to look woke-ish and cut civilian production after one of the shootings, but I also think the truth is more along the lines of what you mentioned, that there was no market for them. Which is more evidence of Colt being a relatively worthless company.


If I had to bottom line it, I would say CZ is a fantastic manufacturer, and has shown the ability to turn around struggling US brands before. I am thrilled that they own Colt, and imagine that they know exactly why they paid what they did for the company. I really hope for good things, and I expect that they will make a great run at it. I think they are one of the really good companies in the gun world.

 

[Old_Red]

CZ announced it was building their headquarters and a small manufacturing in Little Rock, AK in April of 2020. If they move Colt to Arkansas the new CNC tool in a Right to Work State with the oversight of competent management that understands how to make guns should turn around in a hurry.

Colt has tried to market CZ pistols in the past. In 1998 there was the Colt Z-40 (CZ 40) was great gun other than being 40 S&W and Colt using it to demo it smart technology that failed to fire reliably in press showings.