A consortium led by Changsha Zoomlion Heavy Industry Science and Technology Development Co. in Changsha, China, and financial investors has agreed to acquire Milan-based CIFA SpA. The all cash deal will create what Zoomlion officials note is the world's largest concrete machinery manufacturer by revenue, with sales and service networks in most major markets around the world. CIFA investors include Magenta Fund, a private equity firm that took a majority stake in the concrete transportation and construction equipment manufacturer in 2006.
CIFA will enable Zoomlion to expand its market leadership in concrete machinery to the mature European markets and capture fast emerging markets such as Russia and India. CIFA's strong international brand and innovative technology combined with Zoomlion's dominant market position in China and efficient manufacturing expertise will enhance our ability to sustain the phenomenal growth rate we've achieved in the past, says Zhan Chunxin, chairman of Zoomlion, a key construction equipment player in Asia.
The deal ushers the suitor into North America, where Yorkville, Wis.-based CIFA USA Inc. has established a foothold in concrete pumping equipment. Another Chinese-backed operator, Sany America Inc., recently opened an Atlanta headquarters to support a domestic offering of concrete placing and earthmoving equipment.