David Štěpán

Answers questions concerning the acquisition of the Kinetic Group
Director for Foreign Investments
Director of Ammo+ division

About Czechoslovak Group (CSG)

The Czechoslovak Group (“CSG”), based in Prague, is a leading industrial technology company operating in five strategic business segments: Defense, Aerospace, Ammunition, Mobility and Business Projects. It is 100% controlled and led by entrepreneur Michal Strnad, who has transformed it into the preeminent Czech industrial group, with a strong international footprint. CSG employs more than 10,000 people worldwide and owns and manages a diverse portfolio of industrial and trade companies across the civil and defense sectors. CSG has a demonstrated history of supporting the long-term growth and success of the companies it acquires.

 

Myths and Facts

We are building on the heritage of our ancestors who laid the foundations of modern industry. From the heart of Europe, we are building a strong global brand, the pinnacle of modern industry. Our products are here to ensure a safe and stable future for everyone.

Learn more about CSG and our history.

Myth #1:

CSG is a foreign company seeking to take over an iconic American-based company.

Fact #1:

CSG is a leading global company with more than 10,000 employees. It is a close partner of the US and it’s allies. CSG has run highly successful operations in the US for several years already, including ammunition production facilities in Arkansas and Missouri. The company’s US headquarters is based in Virginia and the CEO of CSG-USA is Paul Lemke, who is a retired Lieutenant Colonel in the US Army.

 

Myth #2:

CSG’s ownership of Vista Sporting Products could limit the ability of some law enforcement agencies with foreign procurement restrictions to continue purchasing supplies.

Fact #2:

CSG is acquiring US-based ammunition production facilities, which will continue to be a key suppliers to law enforcement agencies and other users of its ammunition. This will have no impact on law enforcement agencies since production will, remain in the US. Through this acquisition, CSG will also bring stability and investments capital to US small-caliber ammunition producers, which they currently need.

 

Myth #3:

CSG has ties to Russia and China, which could harm US national security.

Fact #3:

  • CSG is a significant supplier to NATO and has several companies with the highest levels of NATO security clearance. CSG also co-operates with leading U.S. defense companies.
  • Furthermore, the Czech Republic, which is where CSG’s global headquarters is located, is a close ally of the US and a NATO member
  • CSG is one of the largest suppliers of armaments to Ukraine in its defensive war against Russia.
  • CSG has absolutely no dealings with the Chinese or Russian military or security services and the company maintains the highest standards of ethics in its business relationships.
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    Myth #4:

    If CSG acquires The Kinetic Group, it will eliminate US jobs by shipping them out of the country.

    Fact #4:

    CSG plans to retain all of The Kinetic Group’sUS. employees and in fact invest in the newly acquired businesses so that they are not only stable but also in a position to grow, ultimately leading to job growth in the states where The Kinetic Group has operations. CSG already has production facilities in Arkansas and Missouri, and the company is currently considering expanding those operations, thus creating further jobs there

     

    Myth #5:

    This acquisition is not good for American consumers because CSG is not experienced in this market.

    Fact #5:

    CSG understands the special importance of the brands that are part of The Kinetic Group to American consumers. The company has demonstrated through its ownership of Fiocchi, which runs two factories in the US, that it is deeply committed to providing high-quality products to customers. CSG’s focus will be on preserving and developing the entire product portfolio of the business and maintaining the standards that US customers expect.

     

    Myth #6:

    CSG’s offer for The Kinetic Group is lower than the competing bid.

    Fact #6:

    CSG’s offer to purchase The Kinetic Group is an all-cash transaction that includes fully committed financing backed by JP Morgan Chase, whereas the competing offer has not demonstrated that it has the financing and means to consummate the transaction. Additionally, Vista Outdoors has been trying to split the company into an ammunition part and an outdoor part for years now - and CSG’s offer respects that.

     

    Myth #7:

    The European Union will mandate CSG to limit its production of commercial ammunition and divert it to other markets.

    Fact #7:

    CSG US operates under the jurisdiction of US laws and regulations, adhering strictly to domestic protocols. The European Union has no authority over the US operations.

     

    Want to learn more? Follow this link.

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