Under the agreement with CBC Europe, Colt CZ will acquire a 100% stake in Sellier & Bellot. The arms holding company will purchase the company's shares for USD 350 million and will also issue a new common shares of Colt CZ. Upon completion of the transaction, CBC will own approximately 27% to 28% of Colt.

Sellier & Bellot specializes in the manufacture of small caliber ammunition and offers a range of products including hunting and sporting ammunition and components for pistols, revolvers, rifles and shotguns. In addition, the company is a major supplier of ammunition to the military and armed forces worldwide and employs approximately 1,600 people.

CBC Europe, together with its CBC Global Ammunition division, are the holding companies for the Brazilian group of international ammunition companies, which includes CBC Brazil, Magtech Ammunition, MEN, SinterFire, New Lachaussée (based in Belgium) and Fritz Werner in Germany. CBC is one of the world's largest ammunition manufacturers with a three hundred year history of manufacturing small and medium calibre ammunition.

This is Colt's second ammunition acquisition this year, following the acquisition of SwissAA Holding.