Colt CZ Group SE (“Colt CZ”, the “Group” or the “Company”) announces that on 28 August 2025 it entered into a Share Purchase Agreement (the “Agreement” or the “SPA”) with Synthesia, a.s. (the “Seller”), a company wholly owned by Kaprain Chemical Limited (“Kaprain”), for the acquisition of Synthesia Nitrocellulose, a.s. (“SNC”). Colt CZ will acquire a 51% stake immediately, with the remaining 49% to be purchased on pre-agreed terms in the medium term.
Synthesia Nitrocellulose, a.s. was established in December 2024 following the spin-off of the nitrocellulose production division from Synthesia, a.s., one of the largest producers of energetic nitrocellulose in Europe and North America. Energetic nitrocellulose is a key raw material used in the production of single- and multi-base powders and ejection charges, and is essential for the manufacture of small-, medium- and large-calibre ammunition. SNC is currently expanding its production capacity to meet growing market demand. In addition, Synthesia Nitrocellulose is a significant producer of industrial nitrocellulose and oxycellulose for use in the healthcare sector.
The total transaction value is CZK 22 billion on an enterprise value basis[1], corresponding to approximately 8.2 times the expected 2025 EBITDA. The purchase price will be settled through a combination of cash and newly issued Colt CZ ordinary shares, which will represent around 40% of the purchase price. Upon completion of the transaction, Kaprain will become the third-largest shareholder in Colt CZ. Synthesia, a.s. will continue to hold the remaining shares in SNC. The transaction will be settled after the conditions precedent have been met, in particular approval by regulatory authorities across multiple countries, which is expected by the first quarter of 2026 at the latest.
In connection with the transaction, Colt CZ Group has also agreed to acquire the energy division of Synthesia, a.s., which provides energy production and supply for the industrial complex in Semtín and Rybitví. The energy division will first be separated into a standalone company. Completion of this part of the transaction is expected in the first half of 2026 and will also be structured as an initial acquisition of a 51% stake followed by the remaining 49% under pre-agreed terms in the medium term. The transaction value will be CZK 1.4 billion on an enterprise value basis and will be paid entirely in newly issued Colt CZ ordinary shares.
“We are proud to welcome Synthesia Nitrocellulose, one of the world’s leading suppliers of energetic nitrocellulose based in a NATO member country, into Colt CZ Group. The acquisition of SNC fits into our strategy of expanding the Group’s activities into medium- and large-calibre ammunition and strengthens our position in a critical part of our supply chain. We intend to continue pursuing vertical integration in ammunition and munitions production, contributing to the strategic independence and self-sufficiency of the Czech Republic and NATO countries in defence supplies,” said Jan Drahota, Chairman of the Board of Directors of Colt CZ Group. “We look forward to working with the management, employees and customers of Synthesia Nitrocellulose. We value the trust placed in us by Kaprain, a significant player in the Czech chemical industry, which will become the third-largest shareholder in Colt CZ Group,” added Jan Drahota.
“We are pleased to have found in Colt CZ Group a partner with a long-term vision for the defence industry, who will support the further growth of Synthesia Nitrocellulose. We believe that combining Kaprain’s chemical know-how with Colt CZ’s ammunition experience will create significant synergies across the supply chain. We are glad to take part in the future development of the entire Colt CZ Group as a major shareholder,” said Jan Kadaník, Chairman of the Board of Directors of Synthesia, a.s. and Director of Kaprain Chemical.
Legal services for Kaprain in this transaction were provided by the law firm Tenacta.
About Colt CZ Group SE
Colt CZ Group is one of the world’s leading manufacturers of firearms and ammunition for armed forces, personal defence, hunting, shooting sports and other commercial applications. Its products are sold primarily under the brands Colt, CZ (Česká zbrojovka), Colt Canada, Dan Wesson, Sellier & Bellot, swissAA, Spuhr and 4M Tactical.
Based in the Czech Republic, Colt CZ Group employs around 4,000 people across its production facilities in the Czech Republic, the United States, Canada, Sweden, Switzerland and Hungary. Since 2020, the Group has been listed on the Prague Stock Exchange. Its majority shareholder is Česká zbrojovka Partners SE.
