Czechoslovak Group's Strategic Expansion into U.S. Ammunition Market

Czechoslovak Group (CSG), led by Czech billionaire Michal Strnad, boosts its U.S. military sales through a $2.2 billion acquisition of Kinetic. The move expands CSG's small-calibre ammunition offerings, leveraging their NATO alliances. Maintaining Kinetic's management, CSG aims for growth without major layoffs or investments.

In a strategic move to expand its presence in the U.S. ammunition market, Czechoslovak Group (CSG) completed a $2.2 billion takeover of Kinetic last month. The acquisition aims to increase CSG's military sales in collaboration with NATO and allied countries.

CSG, owned by Czech billionaire Michal Strnad, has seen rapid growth due to increased demand for military equipment and ammunition. The company's revenue surged by 129% to $2.52 billion in the first nine months of 2024 after acquiring Kinetic from Vista Outdoor in an all-cash deal in November.

David Stepan, CSG board member and CEO of its Ammo+ division, highlighted the potential for growth by leveraging Kinetic's existing management and spare capacity. The acquisition is expected to deliver $1.5 billion in annual sales and significant EBITDA, with no major layoffs or new investments planned.

(With inputs from agencies.)