Czech defence group CSG looks to go global

Czech defence group Czechoslovak Group (CSG) is looking to expand globally, including moves into new areas like jet engines used for drones or missiles, as it prepares for what could be one of Europe's biggest IPOs this year.

- Michael Kahn and Jan Lopatka, Reuters

CSG's roots were in retooling Cold War-era military gear. Its manufacturing of ammunition, military trucks, armoured vehicles and rocket launchers has made it one of Europe's fastest-growing defence firms after tapping into aggressive military spending in the wake of Russia's invasion of Ukraine.

"When the war in Ukraine started, we were the first to start investing heavily," CSG's owner and CEO Michal Strnad told Reuters. "I took the risk and we got going." Strnad, 33, took over the business his father Jaroslav started in the 1990s buying Soviet-era military equipment for scrapping. He is now steering CSG towards an IPO as investors funnel billions of dollars towards defence. Sources have told Reuters that a listing on Euronext Amsterdam could raise over $3 billion and that the IPO process could start as early as this week. The company, which sealed a $2.2 billion deal for US-based small-calibre ammunition maker Kinetic Group in 2024, is also on the lookout for more acquisitions as it seeks to become more integrated to compete with larger rivals and help control its margins.