MSM Group, the Slovak subsidiary of the industrial group CSG, has signed a purchase agreement with the MPI Group to acquire ZVI a.s., a Czech manufacturer primarily focused on medium-caliber ammunition in 20mm and 30mm calibers. The transaction price was not disclosed, as per mutual agreement between the parties.
CSG Group is acquiring a majority stake in ZVI a.s.
“ZVI Vsetín is an important and traditional player in the Czech defense industry, and its know-how in ammunition, weapon, and cannon production holds strategic value for the CSG group. While this acquisition is relatively small in size, it is both symbolically and practically very significant - we are decisively expanding our capacity for ammunition and weapons systems production directly on Czech soil,” said Jan Marinov, Head of the CSG Defence Division.
In addition to its 20mm ammunition, used for example by the Czech Air Force, ZVI is the only Czech producer of 30mm ammunition certified for MK44 Bushmaster II cannons. These cannons are used by many armed forces worldwide, including the Czech Armed Forces, particularly in the Pandur 8x8 armored vehicles. This type of ammunition will also be used in the newly procured CV-90 infantry fighting vehicles for the Czech Army. ZVI is also a qualified supplier for several foreign militaries. The company’s production capacity for medium-caliber ammunition is in the high hundreds of thousands of units per year. With this acquisition, CSG expands its portfolio to include medium-caliber ammunition, which it plans to supply to the Czech Army and Air Force, as well as export abroad.
Jaroslav Král, CEO of ZVI, commented on the transaction:
“CSG’s entry is a logical step in the further development of ZVI. With this partnership, the company gains not only a strong investor but above all a partner with significant export capabilities and extensive experience in growing defense-sector businesses. Furthermore, CSG will enhance ZVI’s supply chain by providing selected components - particularly energetic materials - that ZVI previously sourced from third parties. We are confident that this partnership marks the beginning of a new era of substantial growth for ZVI.”
CSG plans to invest in extensive modernization and expansion of ZVI’s production, primarily in anticipation of increased demand. Another priority is integrating ZVI into CSG’s export projects and embedding it further into the global defense industry supply chains. ZVI will become part of the CSG Defence Division. CSG also plans to invest in the development of new ammunition products in additional calibers and to place this production within ZVI’s facilities. This will result in a significant expansion of manufacturing capabilities within the Czech Republic.
About ZVI a.s.
ZVI a.s., based in Vsetín, is a traditional Czech manufacturer of medium-caliber ammunition, pyrotechnic systems, and weapon systems. It builds on more than a century of engineering and arms manufacturing in the Vsetín region. ZVI is the only Czech-qualified supplier of 30mm ammunition for the Czech Army’s Pandur 8x8 vehicles and holds numerous international certifications for 20mm and other ammunition types. In addition to ammunition, the company also develops and manufactures cannon systems and other specialized products for military and security purposes. The company operates its own shooting range for production-related testing.
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