Colt CZ Group to Acquire Majority Stake in Synthesia Nitrocellulose in Strategic USD 1.1bn Deal

Czech firearms and ammunition manufacturer Colt CZ Group SE announced a major strategic acquisition, agreeing to purchase a 51% stake in Synthesia Nitrocellulose a.s. (SNC) for a total enterprise value of CZK 22bn (USD 1.1bn). The agreement also includes an option for Colt CZ to acquire the remaining 49% stake under pre-agreed terms in the medium term.

Synthesia Nitrocellulose was created in December 2024 through a spin-off from Synthesia a.s., one of the largest producers of energetic nitrocellulose in Europe and North America. The company is a key manufacturer of nitrocellulose, a vital component in the production of smokeless powders and propellants used in small-, medium-, and large-caliber ammunition. The acquisition is central to Colt CZ’s strategy of vertical integration across its ammunition supply chain, strengthening its ability to meet rising demand for defense supplies across Europe and NATO countries.

The purchase will be financed through a combination of cash and Colt CZ shares, with approximately 40% of the price paid in newly issued common stock. This move will make Kaprain, the parent company of Synthesia a.s., the third-largest shareholder in Colt CZ. The transaction is expected to close by Q1 2026, pending regulatory approvals across multiple jurisdictions.

As part of a broader strategic partnership, Colt CZ will also acquire Synthesia’s energy division, which supplies power to the Semtín and Rybitví industrial complexes for CZK 1.4bn (USD 66.5mn). This transaction will be settled exclusively through the issuance of Colt CZ shares and follows the same staged structure as the nitrocellulose acquisition: an initial 51% stake, with the remaining 49% to be acquired later under agreed terms.

SNC is currently expanding its production capacity from 6,000 to 7,000 metric tons to meet growing global demand. It also produces industrial nitrocellulose and oxycellulose for healthcare applications, further enhancing the strategic value of the acquisition.

Colt CZ’s CEO, Jan Drahota, emphasised that the deal aligns with the company’s long-term vision to strengthen ammunition production capabilities and supply chain security, while Kaprain sees the partnership as a synergy of chemical and defence expertise. Together, the two companies aim to solidify Europe’s independence and resilience in defence manufacturing.

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