Carlyle to Acquire Xugong Construction Machinery
Posted on October 25, 2005
The U.S. investment company Carlyle Group said it will pay $375 million for a controlling stake in China's Xugong Group Construction Machinery Co. in the country's first leveraged buyout. Carlyle will take an 85 percent stake in the company, with the state-owned parent company, Xuzhou Construction Machinery Group, keeping the remaining 15 percent share. Xuzhou Construction Machinery Group earlier acquired a 48.68 percent stake in Xugong Machinery to make the company a wholly owned unit in preparation for foreign investment. Xuzhou Construction Machinery Group reported sales totaling 17 billion yuan ($2 billion) in 2004.