UPDATE 1-Czechoslovak Group acquires 70% share in ammunition maker Fiocchi

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PRAGUE, Nov 24 (Reuters) - Privately-held Czech defence and civil manufacturing company Czechoslovak Group (CSG) has acquired a 70% stake in Italy’s Fiocchi Munizioni, a leading manufacturer of small calibre ammunition, from Charme Capital Partners, CSG said on Thursday.

CSG said the Fiocchi family and Charme Capital would keep the remaining stake in the 146-year-old firm. Fiocchi Munizioni expects revenue of 380 million euros ($396 million) in 2022.

Fiocchi Munizioni employs 1,300 people, a 75% increase since 2018, when Charme Capital took a stake to help the family business grow. It has facilities in Italy, the United States and Britain.

The company makes ammunition mainly for shooting sports and hunting, under the Fiocchi, Baschieri & Pellagri and Lyalvale brands. About 15% of output is sold to security services.

“CSG is strongly committed to ... growth of Fiocchi Munizioni over the coming years, with further international development supported by new investments in all the current factories that will also drive new hirings,” the company said.

Terms of the deal were not revealed. Financing was arranged from CSG’s own resources as well as a club of Czech and Italian banks, the company said without further details.

CSG, owned by businessman Michal Strnad, owns a range of businesses from manufacturing of heavy trucks to radars or artillery systems. It employs more than 8,000 people and had revenue of 600 million euros last year.

The company has been among others modernising Soviet-era weaponry, a lot of which is being shipped to Ukraine since Russia’s invasion in February.

$1 = 0.9595 euros Reporting by Jan Lopatka Editing by Mark Potter