Goldman, Chinese firms to pay €271m for CIFA in secondary sale

Italian private equity firm Magenti will sell the concrete equipment firm to a consortium comprised of Shenzhen-listed construction equipment company Zoomlion, Goldman Sachs, Hony Capital and Mandarin Capital Partners.

Goldman Sachs and a consortium of Chinese firms have agreed to pay €271 million ($422 million) to acquire 100 percent of Italian concrete equipment manufacturer Compagnia Italiana Forme Acciaio (CIFA).

CIFA is currently owned by Italian private equity firm Magenta Investimenti and eight other investors.

Shenzhen-listed Zoomlion Heavy Industry Science and Technology Development, a manufacturer and distributor of construction machinery and sanitation equipment in China, will pay €163 million for a 60 percent stake in the company.  It will fund the deal with $50 million of its own cash and $200 million in debt provided by Barclays, according to Reuters. The deal’s other participants, which include Goldman Sachs, Hony Capital and Mandarin Capital Partners, will own 40 percent of CIFA

Goldman is an investor in Hony, which was one of the first domestic private equity firms in China. Hony has been an investor in Zoomlion since 2006. The firm has  $2.8 billion in assets under management and focusses on middle market Chinese companies in construction materials and machinery, pharmaceuticals, and consumer goods and retail industries.

Mandarin Capital is sponsored by China Development Bank, the Export-Import Bank of China and Italy’s Banca Intesa Sanpaolo. Mandarin manages a €328 million fund, focussing on industrial sectors that can benefit from synergies between China and Europe.

Post-transaction, CIFA’s addition to Zoomlion will create the world’s largest concrete machinery manufacturer, the firm said in a statement.