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Industry NewsChinese Company Buying Noted Italian Yacht ManufacturerJanuary 10, 2012 In a move which underlines China’s continued aim of acquiring prestigious overseas brands Shandong Heavy Industry Group-Weichai Group, which makes construction machinery, power systems, commercial vehicles and auto parts and is the parent company of diesel engine maker Weichai Power Co Ltd, is taking a 75% stake in Italian yacht maker Ferretti Group. The stake comes from via an investment of €374 million, including equity investment of €178 million, and provision of debt financing of €196 million. RBS and funds under the management of Strategic Value Partners will also and both become 12.5% shareholders. Ferretti is one of the world's largest luxury yacht manufacturer, with eight established yacht brands, and also owns eight shipyards in Italy, as well as in Miami, Fla., U.S.A. The company employs nearly 2000 people. The company was available due to a relatively highly leveraged balance sheet and the continued lower demand levels for certain classes of luxury yachts post 2009. According to reports, Shandong said the company would provide Ferretti with resources including “new marketing channels and capital support to expand more effectively into emerging markets.” Shandong Heavy will seek a separate listing for Ferretti in Hong Kong in three to five years, it is understood. The deal would help Ferretti better tap the global yacht industry and meet growing Chinese demand for luxury goods for the coming five to 10 years, Ferretti group chairman Norberto Ferretti is quoted as saying. China’s overseas ambitions were also demonstrated in 2009 when Weichai Power took control of French engine maker Moteurs Baudouin thus securing its first engine making facility outside of its homeland.
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