Colt CZ Group (COLT) Acquisition presentation summary

Transaction overview

• Signed agreement to acquire 51% of Synthesia Nitrocellulose (SNC) for 11.22bn CZK, with the remaining 49% to be acquired under agreed terms over the medium term.

• Payment includes 5.5bn CZK in cash and newly issued shares; Kaprain Chemical will become a 5-10% shareholder.

• Acquisition includes SNC's energy business, which will be demerged and acquired by H1 2026.

• Call/put option for remaining 49% stake starts in 2028 at the same valuation.

• Closing expected between November 2025 and Q1 2026, with full acquisition by 2032.

Strategic rationale

• Strengthens vertical integration in ammunition supply chain, expanding into medium- and large-caliber ammunition.

• Secures direct access to energetic nitrocellulose, a critical raw material for propellant production.

• Builds on synergies with existing ammunition businesses and opens new partnership opportunities.

• Supports strategic autonomy and supply security for Czech Republic and NATO allies.

• Plans to further integrate production chain, including potential in-house or M&A-based propellant production.

SNC business profile

• SNC is a top 3 NATO producer of energetic nitrocellulose, essential for gunpowders and propellants.

• Also produces industrial nitrocellulose, oxycellulose, and by-products for various industries.

• Operates a fully integrated production site with in-house acid preparation and on-site energy supply.

• Employs around 400 experienced staff and holds all customer contracts.

• Capacity expansion underway to meet growing demand, targeting over 7,000 tons annually.