Merger will create new global leader for concrete pumps.
* The transaction is supposed to be finished at the end of the first quarter in 2012.
* Putzmeister founder Karl Schlecht said “This is a China-Germany showcase transaction".
Aichtal, Germany, 27 January 2012 - Putzmeister Holding GmbH ('Putzmeister'), SANY Heavy Industry Co., Ltd ('Sany') and CITIC Private Equity Advisors (Hong Kong) Co., Ltd. ('CITIC PE Advisors') signed an agreement on the merger of the three companies. Sany, together with CITIC PE Advisors as a minority shareholder, thereby acquires 100 per cent of Putzmeister. The final closing of the deal is subject to approval by the relevant authorities and the customary closing conditions. The deal is estimated to close in the first quarter of 2012. The Bank of America Merrill Lynch acted as Sany’s exclusive financial advisor, and Shearman & Sterling LLP and Jingtian & Gongcheng law firm were the legal advisor of Sany. Meanwhile, Morgan Stanley acted as Putzmeister’s sole financial advisor. During the whole process of the transaction, CITIC PE Advisors provided professional guidance and rendered great support.
Putzmeister develops, produces and sells construction machinery world-wide, especially concrete pumps, for the building and mining industry, as well as for tunnel construction and large-scale industrial projects. Sany, based in Changsha, China, is a large Chinese producer of construction machinery as well as a market leader for concrete pumps in China, which is the largest and fastest-growing market for concrete pumps and other industrial equipment world-wide. The business activities of Putzmeister and Sany are highly complementary geographically. The merger of the Chinese market leader in concrete pumps with the leading provider in most markets outside of China thus follows a clear strategic and industrial goal: to create a global market leader for concrete pumps.
"After mergering with Sany Group, Putzmeister gains not only the opportunity to enter a surging market, but also the whole set of solution and value chain for batching plant, truck-mixer and concrete pumps, which will enable us to provide customers with the unique service and product portfolio." said Norbert Scheuch, CEO of Putzmeister.
Both partners benefit substantially from the combination. Sany's expanding global distribution network provides Putzmeister with a significant competitive advantage and secures Putzmeister's growth prospects. In the meanwhile, Sany adds to its portfolio technologically cutting-edge products and innovations 'Made in Germany' and acquires a strong distribution and service network outside of China.
This transaction marks the first time that a large and well-known German Mittelstand company decides to merge with a Chinese partner. Karl Schlecht, founder of Putzmeister, said, “This merger is a global showcase transaction. Sany is one of the few large Chinese conglomerates which is personally operated by the founder, who is also the majority shareholder. In fact, Liang Wengen is one of China's most successful entrepreneurs. He not only shares our entrepreneurial spirit, but also Putzmeister's visions and corporate values.'
As the current headquaters of Putzmeister, Aichtal will become Sany's new headquarter for concrete machinery outside China. Putzmeister will continue to operate with a high degree of independence in day-to-day management. Sany will focus on operations in China where Putzmeister will continue to be the high-end brand. Norbert Scheuch will remain in his position as CEO of Putzmeister within Sany and will join Sany’s executive board. The entire proceeds of the transaction will be transferred to the benefit of the Karl Schlecht Gemeinnützige Stiftung (KSG) and the Karl Schlecht Familienstiftung (KSF).
Liang Wengen, Chairman and founder of Sany, said, "With this merger Putzmeister and Sany will create a new global market leader for concrete pumps. Putzmeister will remain as an independent brand with its own management within Sany Group. We are looking forward to work with the Putzmeister management, which made this business so successful."
Source:cmbol.com