Leading Construction Equipment Manufacturer Zoomlion to Acquire Leading Italian Concrete...

Leading Construction Equipment Manufacturer Zoomlion to Acquire Leading
Italian Concrete Machinery Maker CIFA

CHANGSHA, China, June 25 /PRNewswire/ -- A consortium formed by Changsha
Zoomlion Heavy Industry Science and Technology Development Co., Ltd. (SZSE:
000157) and financial investors including Hony Capital, Goldman Sachs, and
Mandarin Capital Partners today jointly announced that they have signed an
agreement to acquire 100% of CIFA S.p.A. in an all-cash transaction from
Magenta Fund and other shareholders of CIFA. Zoomlion, headquartered in
Changsha, China, is a leading construction equipment manufacturer in Asia.
Based in Milan, Italy, CIFA is a leading concrete equipment manufacturer in
Europe. The combination will create the world's largest concrete machinery
manufacturer by revenue with sales and service networks in most major markets
around the globe.
"The addition of CIFA will enable Zoomlion to expand its market leadership
in concrete machinery to the mature European markets and to capture fast
emerging markets such as Russia and India. CIFA's strong international brand
and innovative technology combined with Zoomlion's dominant market position in
China and efficient manufacturing expertise will enhance our ability to
sustain the phenomenal growth rate we've achieved in the past," said Mr. Zhan
Chunxin, Chairman and CEO of Zoomlion. "We are very impressed by CIFA's highly
experienced management team, and believe that, together we will achieve
profitable growth for many years to come."
Already an investor of Zoomlion since 2006, Hony Capital's CEO Mr. John
Zhao commented: "We feel very privileged to team up with Zoomlion in this
investment. Mr. Zhan is one of the best business leaders with a clear vision
and long history of creating shareholder value through organic growth and M&A
in Asia. We are excited to work with Mr. Zhan and his team to continue the
success on a global platform."
"We are very delighted to join forces with Zoomlion, Hony Capital and
Goldman Sachs in this acquisition. The combination of a strategic buyer and
carefully selected financial sponsors will ensure a speedy and effective
integration of the companies," commented Francesco Valentina, Managing Partner
of Mandarin Capital Partners.
ABOUT CHANGSHA ZOOMLION HEAVY INDUSTRY SCIENCE AND TECHNOLOGY DEVELOPMENT
CO. LTD.
Zoomlion is a leading manufacturer and distributor of construction
machinery and sanitation equipments in China. Its product portfolio consists
of over 100 different products, including concrete machinery, cranes,
sanitation equipments, road construction machinery and other types of
construction machinery and products. Zoomlion is listed on Shenzhen Stock
Exchange with a market cap of approximately US$4.6 billion.
ABOUT HONY CAPITAL
Hony Capital is a China-focused middle-market private equity firm,
employing a value-added strategy to increase the performance and value of its
portfolio companies. With US$2.8 billion under management, Hony Capital
primarily focuses on construction materials and machinery, pharmaceuticals,
and consumer goods and retail industries.
ABOUT GOLDMAN SACHS
Goldman Sachs is a leading global investment banking, securities and
investment management firm that provides a wide range of services worldwide to
a substantial and diversified client base that includes corporations,
financial institutions, governments and high net worth individuals. Founded in
1869, it is one of the oldest and largest investment banking firms. The firm
is headquartered in New York and maintains offices in London, Frankfurt,
Tokyo, Hong Kong and other major financial centers around the world.
ABOUT MANDARIN CAPITAL PARTNERS
Mandarin Capital Partners is the largest Sino-Italian private equity fund
sponsored by China Development Bank, the Export-Import Bank of China and Banca
Intesa Sanpaolo with total fund size of EUR 328 million. Mandarin mainly
focuses on industrial sectors where synergy could be achieved through
capitalizing complementary advantages between China and Europe. With dedicated
professionals located in Italy and China, Mandarin provides value creation
services to assist Chinese companies in their overseas expansion in
Europe/Italy and European companies' investment in China.
ABOUT CIFA
CIFA is a leading concrete equipment manufacturer offering full-line
concrete equipments including concrete pumps, concrete mixers, plants, and
formworks. Founded in 1928, CIFA is based in Senago, Italy with 7 production
sites in Italy, and 2 sales/after-sales facilities in the U.S. and Mexico.
CIFA had sales of approximately EUR 300mm in 2007 and has strong market shares
in Western Europe and emerging markets such as Russia and Bulgaria.
ABOUT MAGENTA FUND
Magenta is an Italian private equity fund, founded by Luciano Balbo,
Edoardo Lanzavecchia and Luigi Sala, who together have over 50 years of
experience in the private equity industry.
SOURCE Hony Capital

Sam Sun, +8610-6250-9936, for Hony Capital