Synthesia Nitrocellulose was founded in December 2024 following the spin-off of the nitrocellulose division from Synthesia, a.s., one of the largest producers of energetic nitrocellulose in Europe and North America. The material is essential for the production of powders and propellants used in small-, medium- and large-calibre ammunition, with the company also producing industrial nitrocellulose and oxycellulose for healthcare.
The purchase price will be settled through a mix of cash and new common shares of Colt CZ, representing around 40% of the total consideration. Upon closing, Kaprain will become the third largest shareholder of Colt CZ, while Synthesia, a.s. will remain the owner of the balance of shares in Synthesia Nitrocellulose.
Completion of the transaction is expected no later than the first quarter of 2026, subject to regulatory approvals in several countries. Colt CZ has also agreed to acquire Synthesia’s energy division, which supplies the Semtín and Rybitví industrial complex, in a separate CZK 1.4 billion (approximately EUR 57 million) deal to be paid exclusively in new Colt CZ shares, initially acquiring 51% and the rest under agreed terms.
“We are proud to welcome Synthesia Nitrocellulose, one of the world’s leading suppliers of energetic nitrocellulose based in a NATO member country, to Colt CZ Group. The acquisition of SNC fits into our strategy of expanding the Group’s activities into medium and large-caliber ammunition while strengthening our position in a critical element of our supply chain. We intend to continue the vertical integration of ammunition manufacturing, thereby contributing to the strategic independence and self-sufficiency of the Czech Republic and NATO countries in defense supplies,” said Jan Drahota, Chairman of the Board of Directors of Colt CZ Group. “We look forward to working with the management, employees, and customers of Synthesia Nitrocellulose. We appreciate the trust of the Kaprain Group, an important player in the Czech chemical industry, which will become the third largest shareholder of Colt CZ Group,” added Jan Drahota.
“We are pleased to have found a partner in Colt CZ Group with a long-term vision in the defense industry that will support further development of Synthesia Nitrocellulose. We believe that combining the chemical know-how of Kaprain with the experience of Colt CZ in the field of ammunition will bring significant synergies throughout the supply chain. We are pleased that, as n major shareholder, we will be involved in the future development of Colt CZ Group,” said Jan Kadaník, Chairman of the Board of Directors of Synthesia, a.s. and Director of Kaprain Chemical.
