Securities Times: Sany acquires "Elephant" to complete the delivery and sit firmly on the leading throne The new "Elephant" will have sales of 16.4 billion yuan in four years

Source: Securities Times Reporter: Wen Xingming Trainee Reporter: Xing Yun
 

With the completion of the equity delivery, Sany Heavy Industry (600031) officially acquired the world, known as the "elephant".Concrete machinery*5656 brand, Putzmeister, Germany. According to the business target, the new "Elephant" will generate sales of 2 billion euros in four years.

On April 16, German time, Sany Heavy Industry and CITIC Industrial Investment Fund (Hong Kong) Consulting Co., Ltd. and Karl Schlecht Stamichenstung and Karl Schlecht Familienstiftung, shareholders of Putzmeister Holding Co., Ltd., completed the closing procedures for the equity transfer of Putzmeister Holding Co., Ltd. in Germany. In this transaction, Sany Germany and CITIC Fund invested a total of 360 million euros to acquire 100% of the equity of "Elephant", of which Sany Germany invested 324 million euros (equivalent to 2.654 billion yuan), owning 90% of the equity.

Liang Wengen, chairman of Sany, said: "In the future, Putzmeister will not only continue to maintain the leading advantages of existing products, but also further extend the product line and become the world's leading provider of complete sets of construction machinery equipment; Putzmeister's global sales network will not only continue to sell all the products of Putzmeister brand, but also bring Sany's other construction machinery products to the world; Putzmeister's global jobs will not only not be eliminated, but will increase substantially. ”

Previously, on April 1 and 10, Sany Heavy Industry had been approved by the Ministry of Commerce and the National Development and Reform Commission. The two parties successfully completed the approval procedures for the merger and acquisition by the Chinese and German governments, and Putzmeister officially became a member company of a Chinese construction machinery company, and was recognized by the two governments. At the same time, Elsita has been identified as the global headquarters for Sany's concrete machinery business outside of China, and Putzmeister will maintain relative operational independence.

Founded in 1958, "Elephant" is one of the world's most well-known construction machinery manufacturers. As of December 31, 2010, Elephant had total assets of €491 million and net assets of €177 million. In 2010, the company achieved sales revenue of 550 million euros and net profit of 1.5 million euros, and is expected to achieve sales revenue of 560 million euros and net profit of 6 million euros and 7 million euros in cash on account in 2011.

Qiu Shiliang of Galaxy Securities believes that the price of the transaction target is 360 million euros, corresponding to 0.64 times the PS (stock price / sales revenue per share), 2.03 times the PB (stock price / net assets per share), PS is lower than the valuation level of domestic A-share construction machinery, and PB is close to the valuation level of domestic A-share construction machinery. The price of the subject matter of this transaction is fair, and the transaction price is slightly lower than the outside estimate.

The board of directors of Sany Heavy Industry will nominate Norbert Xiao Yi, CEO of Putzmeister, as a director of Sany Heavy Industry (subject to the procedures of the shareholders' meeting) and entrust him to continue to lead the development of Putzmeister. At the same time, Norbert Xiao Yi and his German team will be responsible for completing the integration of the global concrete machinery business outside of China and developing the Chinese market together with Sany.

Sany Heavy Industry has also preliminarily determined Putzmeister's business goals for the next few years, that is, to achieve sales of 700 million euros in 2012 and 2 billion euros (equivalent to 16.4 billion yuan) in 2016, which is twice the good performance of Putzmeister's history.

The completion of this project marks the leapfrog development of Sany Heavy Industry into the international market, which will shorten the internationalization process by 5-10 years. According to reports, Putzmeister's global market share (excluding the Chinese market) has been about 40% for a long time, and more than 90% of the sales revenue comes from overseas. After the completion of this project, Sany Heavy Industry will be more firmly seated in the global concrete machinery*5656 throne.