Colt CZ Group SE has closed on its acquisition of all outstanding shares of capital stock of New England Expert Technologies Corp., which owns Valley Steel Stamp, Inc. (VSS). The company completed the transaction on June 16, 2025, following the fulfillment of all pre-closing conditions, including approval from the Committee on Foreign Investment in the United States (CFIUS).
“The strategic rationale for the transaction is to achieve vertical integration in selected product categories. With this acquisition, Colt CZ Group gains control of a reputable, high-quality precision machining company that serves as a key supplier of revolver frames, cylinders, spare parts, and other firearm components for the commercial market,” stated Radek Musil, CEO of Colt CZ Group. “The acquisition will also significantly strengthen the Group’s engineering and manufacturing capabilities located in the United States and is expected to improve profit margins for its commercial market products.”
The purchase price was $59.5 million before adjustment for working capital and cash and represents a multiple of 5.0x the 2024 EBITDA of the company’s firearms business. The company paid the full purchase price at closing, with no earn-out provisions or non-cash components included in the transaction.
The acquired company will be consolidated into Colt CZ Group’s financials as of June 16, 2025. The company financed the transaction with existing cash resources.
VSS is reportedly a well-established manufacturer of firearm components and has been a long-term supplier to Colt CZ Group in the United States. Headquartered in Greenfield, MA, the company employs approximately 150 people. In 2024, VSS generated $44.3 million in revenue from its firearms operations. Following the acquisition, Valley Steel Stamp will continue to operate under its existing trade name. Operations unrelated to firearms production were excluded from the transaction and will continue independently under NE-XT, which will retain its trademark and brand name.
Steve Capshaw, the long-term co-owner and CEO of the acquired company, has joined Colt CZ Group as CEO of Colt’s Manufacturing Company, effective June 16, 2025.
Musil said, “I am pleased to welcome Steve to the team. With his extensive and longstanding experience in firearms engineering and manufacturing, I’m confident he will play a key role in shaping our strategy for the U.S. commercial market. His leadership will be vital to launching new products and driving the next phase of growth for our U.S. operations.”
Images courtesy Colt CZ Group SE, LinkedIn
