Czech-based firearms maker Colt CZ Group SE completed its acquisition of a 51 percent stake in Synthesia Nitrocellulose, a Czech manufacturer of gunpowder ingredients.
Colt CZ, which also has operations in the United States, Canada, Sweden, Switzerland, and Hungary, acquired 51 percent stake in both Synthesia Nitrocellulose and Synthesia Power, a spin-off of the energy division of Synthesia, for the combination of the cash consideration for CZK 5.5 billion ($229 mm) and a new issue of 6,174,214 shares of Colt CZ common stock at a price of CZK 732 ($35.24) per share. The total acquisition price is CZK 10.0 billion ($480 mm), after deduction of Synthesia Nitrocellulose’s net debt. The Group can acquire the remaining 49 percent stake in both companies under already agreed terms in the medium term.
The acquisition price may be further adjusted during the first quarter of 2026 to reflect Synthesia Nitrocellulose’s actual net debt and working capital as of January 6, 2026.
The selling company, Kaprain Chemical Limited, acquired a 9.86 percent stake in Colt CZ’s share capital and has become the third-largest shareholder. New shares were issued on January 6, 2026, and both Synthesia Nitrocellulose and Synthesia Powerwill are included in the Group’s consolidation as of January 1, 2026.
“The closing of the acquisition of one of the world’s leading producers of energetic nitrocellulose represents another strategic milestone for Colt CZ Group. By integrating Synthesia Nitrocellulose, we are strengthening our control over a key input material for ammunition production, enhancing the resilience of our supply chain and creating opportunities for further development of technologies and products in the medium- and large-caliber ammunition segment. We also welcome the entry of a new significant shareholder, the Kaprain Group, a strong player in the chemical industry, and we look forward to our future cooperation,” said Radek Musil, CEO of Colt CZ Group.
“Today marks the opening of two new chapters for Kaprain. We have become a significant shareholder in Colt CZ Group, which is listed on the Prague Stock Exchange. At the same time, we have gained a strong strategic partner with whom we will continue to develop nitrocellulose and energy production in Pardubice. We also expect to explore further expansion opportunities across the entire value chain, both organically and through M&A. We view both new chapters with optimism and look forward to a long-term partnership with Colt CZ Group,” stated Jan Kadaník, chairman of the Board of Directors of Synthesia, a.s. and director of Kaprain Chemical.
The acquisition was financed through a combination of the company’s existing cash resources and via a public bond issue in November 2025.
“We would like to thank our shareholders and bondholders for their long-term commitment and trust. In line with our strategic vision of growth, we continue to actively assess capital market opportunities to enhance the Company’s market value and increase the liquidity of our shares, with the objective of creating conditions for broadening our shareholder base,” added Musil.
Synthesia Nitrocellulose, a.s. was founded in December 2024 through a spin-off of the nitrocellulose manufacturing division from Synthesia, a.s., one of the largest energetic nitrocellulose manufacturers in Europe and North America. Energetic nitrocellulose is a basic raw material to produce single and multi-component powders and propellants, and is essential for the production of small-, medium-, and large-caliber ammunition.
Synthesia Nitrocellulose is expanding its production capacity to meet growing market demand. Synthesia Nitrocellulose is also a major manufacturer of industrial nitrocellulose and oxycellulose for healthcare use.
Synthesia Power, a.s. is a spin-off of the energy division of Synthesia, a.s., which generates and supplies energy for the industrial complex in Semtín and Rybitví.
Colt CZ’s firearms and ammunition brands include Colt, CZ (Česká zbrojovka), Colt Canada, Dan Wesson, Sellier & Bellot, Spuhr, SwissAA, and 4M Tactical.
Image courtesy Synthesia Nitrocellulose
