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CZ Group Buys Its Own Powder Supply
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CZ Group Buys Its Own Powder Supply

Colt CZ Group closed a $1.05B deal for 51% of Synthesia Nitrocellulose, locking in majority control of a key European propellant supplier. The move pushes the Colt/CZ parent deeper into vertical ammo production.

Steve DuskettFebruary 17, 2026
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Photo by JiNej / CC BY-SA 3.0
Article Info

CZ Group Acquires Synthesia Nitrocellulose

Industry NewsDeveloping
CZ Group Acquires Synthesia Nitrocellulose

Photo by JiNej (CC BY-SA 3.0)

Scope
Impactnational
Key Entities
Acquiring company; parent of Colt, CZ, Sellier & Bellot, Dan WessonColt CZ Group SE
Acquired company; major European nitrocellulose producerSynthesia Nitrocellulose a.s.
Seller; now third-largest Colt CZ shareholderKaprain Chemical Limited
Colt CZ ammunition brand supplying U.S. commercial marketSellier & Bellot
CEO of Colt CZ GroupRadek Musil
What It Means
  • Sellier & Bellot ammunition supply—already in wide U.S. distribution—gets more stable raw material backing
  • Colt CZ now controls nitrocellulose production upstream of powder, reducing the supply disruptions that emptied shelves during past shortages
  • Full acquisition of remaining 49% stake is likely, meaning one company may eventually control the supply chain from raw chemistry to finished cartridge
  • NATO rearmament demand is the main growth driver—U.S. commercial shooters benefit indirectly from production capacity expansion
Timeline
December 2024Synthesia Nitrocellulose a.s. created via spin-off from Synthesia a.s.
August 28, 2025Colt CZ Group and Kaprain sign share purchase agreement
November 2025Colt CZ issues public bonds to help finance the acquisition
January 6, 2026Deal closes; new shares issued; SNC and Synthesia Power enter Group consolidation
Colt CZ Group Official Press Release

CZ Group Buys Its Own Powder Supply

Colt CZ acquires majority stake in nitrocellulose maker to lock down ammo supply chain

From The Boise Gun Club Handbook

The supply chain play: Colt CZ Group closed a $1.05 billion deal in January 2026 to take a 51% stake in Synthesia Nitrocellulose, one of Europe's largest producers of energetic nitrocellulose—the raw material that goes into every and propellant used in modern ammunition.

  • The deal was announced in August 2025 and cleared regulatory approvals across multiple countries before closing January 6, 2026.
  • Synthesia Nitrocellulose was only created in December 2024, spun off from Synthesia a.s. specifically to facilitate the transaction.
  • Colt CZ paid through a combination of CZK 5.5 billion in cash and newly issued shares—about 40% of the total price came in stock. The seller, Kaprain Chemical, took those shares and is now the third-largest shareholder in Colt CZ Group.

Zoom in: Nitrocellulose is the unglamorous foundation of the entire ammunition industry, and right now NATO countries are scrambling to secure it.

  • Energetic nitrocellulose feeds production of small-, medium-, and large-caliber ammo alike—no nitrocellulose, no powder, no rounds.
  • Europe's rearmament push has demand running well ahead of existing production capacity, which is exactly why Synthesia Nitrocellulose was already expanding its facilities before this deal closed.
  • Colt CZ didn't previously manufacture nitrocellulose at all. Now they control majority production at one of the continent's biggest plants.

The big picture: This acquisition is the clearest signal yet of where Colt CZ Group is headed. They're not just a firearms brand anymore—they're building an integrated defense manufacturing operation from raw chemistry to finished cartridge.

Colt CZ already sells under Colt, CZ, Colt Canada, Dan Wesson, , Spuhr, swissAA, and 4M Tactical. The Synthesia deal adds nitrocellulose production—the step before powder manufacturing—pushing the group's vertical reach further up the supply chain than most Western firearms companies have ever gone.

Two other details from the transaction deserve attention. Colt CZ also picked up a 51% stake in Synthesia Power for CZK 1.4 billion (paid entirely in shares)—that's the energy infrastructure running the Semtín and Rybitví industrial complex where nitrocellulose is produced. Owning the power supply for your own chemical plant is not a small detail. The group now employs more than 4,000 people across facilities in the Czech Republic, United States, Canada, Sweden, Switzerland, and Hungary.

For American shooters, this mostly plays out in the background—but it does matter. Sellier & Bellot feeds a lot of range bags stateside. Supply chain stability at the raw material level means steadier production and more predictable availability down the line. The U.S. commercial market has felt what happens when propellant inputs get pinched; Colt CZ is structurally betting that won't happen to them again.

What to watch: Colt CZ holds contractual rights to acquire the remaining 49% of both Synthesia Nitrocellulose and Synthesia Power under terms already negotiated—the company described full acquisition as a "medium term" move. CEO Radek Musil has also signaled active interest in additional capital market activity to broaden the shareholder base beyond the current Prague Stock Exchange listing.

  • SNC's production capacity expansion was already underway before the deal closed—Colt CZ is investing in a plant that's actively growing.
  • The broader stated goal is contributing to NATO defense self-sufficiency. At a moment when European governments are actively funding domestic defense production, that's not just press-release language.

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