China’s Zoomlion acquires Cifa

By Richard High26 June 2008

Chinese construction equipment manufacturer Changsha Zoomlion Heavy Industry Science & Technology Development Co Ltd (Zoomlion) has announced the acquisition of Italy's Compagnia Italiana Forme Acciaio (Cifa) for € 271 million (US$ 421.9 million).

In a statement the company said the acquisition was made in partnership with US-based investment bank Goldman Sachs and two other investors. Zoomlion will pay € 163 million (US$ 255.5 million) for a 60% stake in the Italian construction machinery maker, while Goldman Sachs, Mandarin Capital Partners and Chinese private-equity firm Hony Capital would hold the remaining 40%, the company said in a statement to the Shenzhen Stock Exchange.

Zoomlion will use € 31.9 million (US$ 50 million) of its own money and borrow € 127.5 million (US$ 200 million) from the Hong Kong branch of Britain's Barclays Bank to fund the purchase of Cifa, which is being sold by Italian private equity company Magenta and eight other shareholders.

Zoomlion expects the acquisition to help it expand sales overseas. Zoomlion's main domestic rival Sany Heavy Industry Co (Sany) said earlier this year it plans to invest more than € 63.8 million (US$ $100 million) in its first plant in the US, as it expands internationally.

Cifa, founded in 1928, is a leading international concrete machinery manufacturer.

MAGAZINE
NEWSLETTER
Delivered directly to your inbox, World Construction Week Newsletter features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
Longer Reads
Versatile compact loaders
International Construction looks at innovation in compact loaders
How is construction becoming more sustainable?
Sustainable practices in construction are on the up, and the industry is adopting new technologies to reduce emissions
How can ground penetrating radar benefit construction?
John Rodgman, managing director of Borehole Solutions looks at the capabilities of the technology
CONNECT WITH THE TEAM
Andy Brown Editor, International Construction Tel: +44 (0) 1892 786 224 E-mail: andy.brown@khl.com
Simon Kelly Sales Manager Tel: +44 (0) 1892 786 223 E-mail: simon.kelly@khl.com
CONNECT WITH SOCIAL MEDIA