Luther advises CSG on the acquisition of the Gnaschwitz defence industry site from MAXAM

The CSG Group, a leading European defence industrial group headquartered in Prague, Czech Republic, plans to invest more than 100 million euros in the site during the first phase of development and to establish production capacity there for nitroglycerine and nitroglycerine-based products. At the same time, production of ammunition and ammunition components is set to commence. The parties have agreed not to disclose the purchase price. Up to 125 new jobs are to be created at the site.

“Luther supported us with a high level of technical expertise in this complex transaction with a tight schedule and provided multidisciplinary legal advice,” says José de Andrés Abad, Legal Director within the CSG Group. “With Gnaschwitz, we are securing a site with over 150 years of production history and further expanding our manufacturing chain in Germany.”

An interdisciplinary and cross-office Luther team, led by the Cologne team comprising Dr Gregor Wecker, Michael Kunkel and Falco Rohrberg, provided CSG with comprehensive legal support throughout the transaction, particularly in negotiating the purchase agreement and addressing regulatory issues. The Luther team also advised on property law issues relevant to the site, relating to the 57-hectare plot, as well as on foreign trade law matters.

EY provided tax advice on the transaction.

About CSG:

CSG is a leading European defence industrial group, with its top management headquartered in Prague, Czech Republic. The holding entity of the CSG Group is CSG N.V., a Dutch company listed on Euronext Amsterdam. CSG develops and delivers defence and industrial technologies that contribute to a safer and more stable future. The Group focuses on the development and manufacturing of strategically important products, systems and technologies in the fields of defence and ammunition, as well as in related sectors such as aerospace. CSG operates key manufacturing facilities in the United States, the United Kingdom, Spain, Italy, Germany, Poland, Greece, the Czech Republic, Slovakia, Serbia and India, and exports its products worldwide. The Group continues to invest in the growth of its portfolio companies and the expansion of its core business activities. Key companies within the Group include Excalibur Army (Czech Republic, land systems), Tatra Trucks (Czech Republic, vehicles), MSM Group (Slovakia, artillery ammunition) and The Kinetic Group (United States, small-calibre ammunition). CSG employs more than 14,000 people across its integrated and affiliated companies. In 2025, the Group reported annual revenues of EUR 6.7 billion. CSG shares are traded on Euronext Amsterdam under the ticker CSG. More information is available at: www.csg.com

About MAXAM:

MAXAM Germany is part of the international MAXAM Group, headquartered in Madrid, and is the market leader in explosives, blasting technology and services for the mining, raw materials extraction and infrastructure sectors. The company is renowned for its highest safety standards, technical expertise and reliable customer service. Top-quality explosives have been produced at the Gnaschwitz site for over 150 years.

For CSG:

CSG Group: José de Andrés Abad (Legal Director)

Luther, Corporate/M&A: Dr Gregor Wecker (Partner, lead), Falco Rohrberg, LL.M. (Senior Associate), Leon C. Schmitter, LL.M. (Senior Associate)

Luther, Real Estate: Michael Kunkel, LL.M. (Partner), Nurolhaq Rostamzada (Senior Associate)

Luther, Regulatory: Dr Gernot-Rüdiger Engel (Partner), Dr Mathias Mailänder (Counsel), Liv Rettberg (Associate)

Luther, Commercial: Dr Johannes Teichmann (Partner), Pieter Krüger, Mag. Iur. (Counsel)

Luther, International Trade Law/FDI: Dr Alexander Ehrle, LL.M. (Partner)

EY: Sebastian Gehrmann (Partner), Sonny Königstein (Partner), Davina Heinen (Senior Manager), Jonas Grote (Manager)