CIFA, the hottest acquisition of Zoomlion for thre

2022-08-10
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CIFA acquired by Zoomlion for three full years began to make profits

CIFA acquired by Zoomlion for three full years began to make profits

China Construction Machinery Information

and is further establishing a production plant in its Krefeld Uerdingen factory

Guide: in September 2008, Zoomlion, together with Hony capital, Goldman Sachs and Mandalin, jointly acquired 100% equity of Italian concrete machinery enterprise cifa100 for 271million euros. Now after three years of acquisition, CIFA began to make profits in 2011. Although CIFA did not bring the expected profits, it succeeded

in September 2008, Zoomlion, together with Hony capital, Goldman Sachs and Mandalin, acquired 100% equity of Italian concrete machinery company cifa100 for 271million euros. Now the acquisition has been completed for three years, and CIFA is now profitable in 2011. Although CIFA did not bring the expected profits, it successfully improved the technical advantages of Zoomlion in concrete machinery

271million euros won the third place in the world

at the end of September 2008, the joint investor led by Zoomlion signed a purchase and delivery agreement with the shareholders of CIFA company in Italy, officially completing the wholly-owned acquisition of CIFA company. CIFA ranked third in the world in the field of concrete machinery at that time

according to the sale and purchase agreement and the joint investment agreement, the seller's equity is valued at 3 Breaking down industrial barriers and division of sectors, 75.5 billion euros (about 3.988 billion yuan), of which Zoomlion and the co investors contributed 251.5 million euros (about 2.671 billion yuan) in total for the pricing of the equity, and the remaining 124 million euros (about 1.317 billion yuan) were settled by CIFA's own long-term liabilities. After the completion of the acquisition of 100% equity of cifa100, Zoomlion will eventually hold 0% equity of cifa60

according to the transaction arrangement, Zoomlion H.K. Holding Co. Ltd, a wholly-owned subsidiary of Zoomlion H.K. Holding Co. Ltd, is established in Hong Kong by Zoomlion Hong Kong Holdings, which cooperates with the co investors to establish a special purpose company in Hong Kong. Subsequently, the joint venture established project companies in Luxembourg and Italy, and finally the Italian project company acquired 100% equity of cifa100

in terms of equity arrangement, the above-mentioned Hong Kong joint venture company is held by a company under Zoomlion, and the co investor Hony holds 18.0% shares. Its recycled mixture can be used to re inject the headlight holder by 4%, Goldman Sachs holds 12.92% and Mandalin holds 9.04%

in terms of consideration arrangement, Zoomlion and the co investors jointly invested 271million euros (about 2.878 billion yuan) to obtain 100% equity of cifa100%, of which 251.5 million euros (about 2.671 billion yuan) is the equity transfer price paid to the seller, and 19.5 million euros (about 207 million yuan) is the transaction fee payable

Zoomlion will indirectly hold 0% equity of cifa6 and pay 162.6 million euros (about 1.727 billion yuan) for this. The funds came from the commitment letter of the financing arrangement of US $200million (about 1.38 billion yuan) provided by the Export Import Bank of China, Hunan Branch, and the company's own funds of US $50million (about 345 million yuan)

the effect of M & A was tested

in 2007, CIFA achieved sales revenue of more than 3 billion yuan, and Zoomlion concrete machinery sales revenue of about 3.5 billion yuan in the same year. Combined, the combined concrete machinery sales revenue in 2007 reached nearly 7 billion yuan. If Zoomlion "wins" CIFA, it can surpass Sany and become the leader of Hunan Construction machinery industry

in November 2007, when CIFA officially launched the sale procedure of public bidding, Zoomlion immediately began the relevant bidding work. At the end of January 2008, Zoomlion submitted the first round of bids. CIFA was subject to due diligence from February to March. At the end of March, a binding bid was formally submitted. In June, the acquisition agreement was signed with CIFA and will be formally submitted to the CSRC and other regulatory agencies for review after the general meeting of shareholders. Subsequently, it received approval and filing from regulatory authorities including the China Securities Regulatory Commission, the national development and Reform Commission, the Ministry of Commerce, the State Administration of foreign affairs and the state owned assets supervision and Administration Commission of Hunan Province within three months. At the end of September, the equity delivery was completed

however, due to the financial crisis, the acquisition of CIFA did not bring the expected profit contribution to Zoomlion. According to the acquisition report, from 2006 to 2008, the net profit of CIFA showed a downward trend year by year, with net profits of 395million yuan, 179million yuan and 129million yuan respectively in the three years. Zoomlion predicts that the net profits of CIFA from 2008 to 2012 will be 251 million yuan, 297 million yuan, 378 million yuan, 442 million yuan and 517 million yuan respectively. In fact, Zoomlion's profit forecast for CIFA was too optimistic, and CIFA once fell into a loss situation

in this regard, the person in charge of Zoomlion said that the effect of mergers and acquisitions is not only reflected in a financial statement. Through the acquisition, Zoomlion has obtained advanced management methods, technologies, product lines, etc., which has improved the overall strength of the enterprise

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