MSM Group, a Slovak subsidiary of the CSG industrial group, has entered into a purchase agreement with the MPI Group for the acquisition of ZVI a.s., a Czech manufacturer of mainly 20 and 30 mm medium-caliber ammunition. The transaction price was not disclosed based on the agreement of both parties. The CSG Group is acquiring a majority stake in ZVI a.s.
“ZVI Vsetín is an important traditional link in the Czech defense industry and its know-how in the field of ammunition, weapons and cannon production is of strategic value for the CSG Group. Although this acquisition is relatively small in size, it is symbolically and realistically very important – we are significantly expanding our capacities for the production of ammunition and weapon systems directly in the Czech Republic,” says Jan Marinov, Director of the CSG Defense Division.
Jaroslav Král, Director of ZVI, adds to the transaction: “The entry of the CSG group is a logical step for the further development of ZVI. With this entry, the company will gain not only a strong investor, but above all a partner with significant export capabilities and experience in developing companies in the defense segment. Furthermore, CSG will supplement ZVI’s supply chain with selected components that ZVI has previously purchased from third parties, especially energy materials. We are convinced that this merger will bring ZVI a new stage of significant growth.”
CSG plans to invest in extensive modernization and expansion of production, especially due to the expected growth in orders. Another priority is also the involvement of ZVI in the group’s export projects and its further integration into the supply chains of the international defense industry. ZVI will become part of the CSG Defense division. CSG also plans to invest in the development of new products within the scope of ammunition of other calibers and to place this production in the premises of ZVI. This will significantly expand production capacities in the Czech Republic.