Zoomlion wraps up CIFA purchase

Local construction machinery maker Changsha Zoomlion said yesterday it has completed its acquisition of Italy's Compagnia Italiana Forme Acciaio SpA (CIFA), with Goldman Sachs and two other investors.

Changsha-based Zoomlion paid 163 million euros for a 60 percent stake in the Italian construction machinery maker from Italian private fund Magenta Fund and other CIFA shareholders in an all-cash transaction. Goldman, Mandarin Capital Partners and Chinese private equity firm Hony Capital will hold the remaining 40 percent.

The deal is expected to give Zoomlion a foothold in foreign markets and boost its overseas sales by "combining CIFA's international brands, global sales and distribution network", Zhan Chunxin, chairman and CEO of Zoomlion, said.