(Adds details on company, financing)
FRANKFURT, April 19 China's Xuzhou Construction
Machinery Group (XCMG) has agreed to buy a majority stake in
privately held German machinery manufacturer Schwing, the latest
in a series of deals by Chinese companies to acquire German
The German concrete pump maker, one of the world's leading
suppliers in its field, did not disclose the price of the
investment in its statement on Thursday. Reuters first reported
a deal was imminent on March 23..
"The premium brand Schwing is a central part of our
strategic development," XCMG head Wang Min said in
the statement, which also said German management would remain in
The deal follows a series of similar tie-ups this year in
which Chinese firms have scooped up German groups to gain access
to technology, brands and a worldwide distribution network.
In March, German car parts maker Kiekert said it was being
bought by Chinese peer Hebei Lingyun..
In January, China's Sany Heavy Industry said it
would buy Schwing rival Putzmeister in a 360 million euro ($472
million) deal, and LDK Solar invested in German solar
Schwing's concrete pumps are being used to build the new
high-rise building of the European Central Bank in Frankfurt,
Dubai's exclusive Jumeirah Beach Residence and New York's new
One World Trade Center.
With the help of XCMG, Schwing hopes to expand onto Asian
markets, the company said.
XCMG is seeking a U.S. dollar loan worth about 160 million
euros ($210 million) to refinance a bridge loan to help finance
the Schwing acquisition, Thomson Reuters publication Basis Point
reported earlier this week.
Banks are invited to join the three-year term loan, with a
road show scheduled for April 25 in Hong Kong, it quoted banking
sources as saying.
Schwing, owned by the Schwing family, posted sales of
roughly 500 million euros in 2011. It also posted a profit in
2011, a source close to the company said.
The Herne, Germany-based company employs about 3,300 staff,
but is cutting 160 jobs after its sales dropped by 30 percent
amid the economic crisis. After the investment by XCMG, no
further job cuts are planned, a spokesperson said.
Rothschild advised Schwing on the deal.
($1 = 0.7621 euros)
(Reporting by Arno Schuetze and Sabine Wollrab; Editing by Mark
Potter and Jane Baird)