The Rise of Michal Strnad: How CSG Became Europe’s Fastest-Moving Defense Power

A second-generation owner with a first-principles playbook

When Michal Strnad took full control of Czechoslovak Group (CSG) in 2018, many still saw the holding as a patchwork of post-Soviet industrial assets—useful, but limited. Strnad, then in his mid-20s, had a different brief: consolidate Czech-Slovak heavy industry, professionalize governance, and buy growth in categories where demand would structurally outpace civilian cycles—ammunition, military vehicles, aerospace, and dual-use electronics. By 2025, that thesis has become impossible to ignore.

From engineering cluster to defense-first platform

Under Strnad, CSG evolved from a primarily engineering group into a diversified, defense-led industrial platform operating across Europe and North America. The portfolio today ranges from heavy trucks and munitions to radars and aircraft programs, with a common thread: products aligned to NATO procurement and export markets where reliability and delivery speed matter more than brand legacy. CSG reports that the majority of its revenue is now defense-related, reflecting this deliberate pivot.

Ammunition: the flagship bet

CSG’s most visible step-change came in small-caliber ammunition. In 2022, the group acquired a majority stake in Italy’s Fiocchi Munizioni—one of the world’s premier premium ammo makers—then moved to 100% ownership in April 2025, bringing Fiocchi of America, Baschieri & Pellagri, and Lyalvale Express fully under the CSG umbrella. The logic was simple: combine European heritage brands and U.S. manufacturing to serve both civilian and institutional demand at scale.

That set the table for the transformational U.S. move: acquiring The Kinetic Group (Federal, Remington, Speer, HEVI-Shot) from Vista Outdoor. After clearing regulatory reviews and shareholder approvals in 2024, CSG closed the roughly $2.2 billion deal and instantly became one of the world’s largest small-arms ammunition producers—crucially, with deep U.S. footprint and thousands of skilled workers already in place. The plan, as stated by management, is to lean harder into military channels while preserving Kinetic’s dominant sporting lines.

Aerospace: rebuilding a national champion

If ammunition is the scale engine, aerospace is the prestige program. Through Aero Vodochody, CSG is reviving a storied Czech brand—shipping aerostructures (including for Embraer’s C-390) and advancing trainer/light-attack programs. Aero reported its best modern financial results on the back of L-39 family work and stable aerostructures, signaling that patient capital, predictable work packages, and export discipline can turn a legacy asset into a growth contributor.

The operating model: buy right, integrate quietly, sell globally

Several elements explain Strnad’s acceleration:

• Acquisition discipline. Targets with existing order books, export credentials, and the ability to scale within NATO supply chains. (Fiocchi; The Kinetic Group.)
• Local roots, global routes. Keep engineering and production anchored in Czech-Slovak industry while adding U.S./EU capacity to de-risk politics and logistics.
• Governance and brand neutrality. CSG largely lets acquired brands speak to their markets (Federal, Remington, Fiocchi) while centralizing capital allocation and compliance.
• Procurement fluency. The group’s mix matches today’s demand curve—ammunition and support platforms—rather than betting on long, speculative R&D cycles.

Strategic tailwinds—and scrutiny

CSG’s rise coincided with a historic rearmament cycle: NATO states replenishing stocks, Ukraine’s urgent needs, and a broader shift from just-in-time to just-in-case defense logistics. That brought opportunity—and attention. The Vista/Kinetic transaction, for example, faced intense U.S. scrutiny before winning clearance and shareholder backing. The outcome mattered beyond one deal: it effectively certified CSG as a trusted steward of critical U.S. ammunition capacity.

What Strnad built—and what comes next

By 2025, CSG is no longer a “Czech holding” but a transatlantic defense manufacturer with recognized brands, diversified plants, and a pipeline of military and dual-use programs. Strnad has publicly signaled ambition to push CSG toward the top tier of European defense groups. With ammunition scale secured and aerospace stabilized, expect the next moves to focus on:

• Deeper military mix at Kinetic (institutional contracts, NATO frameworks).
• Vertical resilience in energetics and components to protect margins and lead times.
• Selective aerospace bets where exportability and industrial partnerships (e.g., Embraer workshares) reduce program risk.

Bottom line: Michal Strnad didn’t just inherit factories—he re-architected a regional industrial base into a coherent, export-driven defense platform. In a market where delivery beats slides, CSG’s operating culture—acquire, integrate, fulfill—has turned speed and scale into durable advantage. The question now isn’t whether CSG belongs in Europe’s top tier, but how quickly it aims for the very top.

Adriadefense.com