China-based construction equipment manufacturer Changsha Zoomlion Industry Science and Technology Development Co and two partners have completed their acquisition of Italy-based CIFA.
The Milan-headquartered concrete equipment manufacturer is being acquired for a total of US$370M from its majority, private equity, owners led by Italy’s Magenta.
A consortium of Zoomlion, Goldman Sachs, the Mandarin Fund and Hony Capital moved in June to strike the deal with Cifa. The acquisition gives a 60% holding to Zoomlion. Cifa needed to get Intesa Bank, with which it has had a debt agreement since 2006, to agree to the change of ownership.
As part of the acquisition process, and to serve its wider strategic goals in international markets, Zoomlion has set up ownership vehicles to serve its expansion plans. Zoomlion (Hong Kong) was approved to use US$150M to establish Zoomlion Overseas Investment Management (Hong Kong). The company is based in Changsha, Hunan province. Magenta and other private equity firms bought a controlling stake (72.5%) in Cifa two years ago.
