A consortium formed by Changsha Zoomlion Heavy Industry Science and Technology Development Co., Ltd and financial investors including Hony Capital, Goldman Sachs, and Mandarin Capital Partners have acquired the Italian-based CIFA S.p.A concrete machinery manufacturer.
- Combines leading European brand in concrete machinery and leading Chinese construction equipment manufacturer, creating world’s largest concrete machinery manufacturer
- Complementary geographic coverage and product ranges with rapidly expanding sales and service networks in most major markets worldwide
- Total transaction value of approximately 511 million euro, including total equity contribution from the consortium of 271 million and debt financing of 240 million euro.
- Deal expected to be accretive to Zoomlion’s earnings in its first year, with savings expected from coordinated expansion into emerging markets, leveraging on combined company’s global sales and distribution network, increased production efficiency and R&D resources.
Zoomlion, headquartered in Changsha, China, is a leading construction equipment manufacturer in Asia. CIFA, headquartered in Milan, Italy, is a concrete machinery manufacturer with an approximately 20 per cent market share in Western Europe and a leading brand name in Europe with a rapidly growing presence in the Middle East and Russia. The combined company’s global sales and distribution network cover the Americas, China, Western Europe, Eastern Europe, South East Asia, Australia, the Middle East, Africa, Russia and other countries in the former Soviet Union.
Strategy for North America
The group will leverage on the expertise of the two CIFA branches in the USA and Mexico to develop a double brand strategy. The initial planning an implementation process are currently underway.
Matteo Rolla, president and CEO of CIFA USA, and Jimmy Pan, manager of international trade for Zoomlion’s Concrete Machinery division, announced the acquisition to the U.S. marketplace at the World of Concrete in Las Vegas, February 4.
Pan said that there would be no fanfare associated with Zoomlion’s entry into the U.S. market. "We are going to do things step-by-step from our (CIFA USA) Milwaukee office and the Zoomlion Group office in Los Angeles," he explained. "We are shaping our strategy for the U.S., Canadian and South American markets and I am confident that we can take market share and secure a bright future."
This marks CIFA’s 10 year anniversary in the U.S. Opened in Cudahy, WI, in 1999 as a concrete pump manufacturer, the operation has grown rapidly to its existing facility in Yorkville, WI.