Securities Daily: Flash mergers and acquisitions in overseas markets, Sany Heavy Industry's internationalization "hunting"

Source: Securities Daily Reporter: Li Jianjun

Sany Heavy Industry's lightning acquisition continues to be staged.

On July 24, Sany Heavy Industry (600031) announced that on July 19, German time, the company's holding subsidiary, Putzmeister Holding GmbH (hereinafter referred to as "Putzmeister"), signed an "equity transfer agreement" with Mr. Hans-George Stetter, and Putzmeister invested 8.1 million euros to acquire Intermix held by Mr. Hans-George Stetter 100% equity interest in GmbH.

A few months ago, Sany Heavy Industry took Putzmeister under its umbrella, and now Putzmeister has become an acquirer. This action also made the rumors about the tight capital chain of Sany Heavy Industry self-defeating.

Sany helps "elephants" extend the industrial chain

"Sany can help Elephant quickly expand its product coverage from concrete pump trucksMixer trucks, mixing plant. At the beginning of this year, Sany Heavy Industry President Xiang Wenbo said.

Everything came faster than expected. In April, Sany Heavy Industry completed the delivery of the equity acquired by Putzmeister. Just three months later, Putzmeister announced the acquisition of mixer truck manufacturer Intermix. Behind this, it is inseparable from the promotion of Sany Heavy Industry, and it is also inseparable from the acceleration of the integration of Sany and Putzmeister.

Sany Heavy Industry announced that the acquisition of Intermix GmbH will help enrich Putzmeister's product portfolio, extend the industrial chain, and form a good synergy with Sany Heavy Industry's existing business.

Stuttgart, Germany, is home to Putzmeister's headquarters, which has also become the global headquarters of Sany Heavy Industry Concrete Machinery outside the Chinese market, and Intermix's customer service headquarters and host logistics center are located in Heimertingen, a city in the southern German city of Memmingen. The two places are not far apart.

"This acquisition of *Midea enriches our product portfolio." Putzmeister* Executive Norbert Shaw said.

He said Putzmeister will quickly begin selling mixer trucks using the company's global marketing channels.

According to the KHL Group, an international information agency for the construction industry, with the acquisition of Intermix, Putzmeister has further expanded its presence in the concrete machinery market.

The acquisition responds to rumors of a tight capital chain

Sany also responded to the suspicion of a tight capital chain with this acquisition.

Just this month, rumours of Sany restarting its Hong Kong IPO were rampant, and there was speculation that the company was eager to quench its thirst through a Hong Kong IPO due to cash flow problems. At present, it is late July, and the outside world has not seen any substantive action on the IPO. In response to the rumors, Zhao Xiangzhang, vice president of Yiyi Heavy Industry High * last Wednesday, also made it clear: "In July this year, the company did not start the listing plan at all. ”

Xiang Wenbo has repeatedly said that the purpose of going public in Hong Kong is not because of lack of money, but because he hopes to use it as an international platform, "For example, the acquisition of Putzmeister, if there is a Hong Kong listing platform, we can use the share exchange, not only in the form of all cash." ”

In fact, cash flow suspicion is not groundless, due to this year's European economy and China's economic downturn, the development performance of construction machinery enterprises is generally "tortured". As a leading enterprise, Sany Heavy Industry has naturally attracted much attention.

Recently, Jiang Xiangyang, the liaison officer of Sany stationed in Putzmeister, revealed that the integration effect of the two sides is good, and Putzmeister's sales increased by 10%-15% year-on-year in the first half of the year, and it is expected that the sales performance will be better in the second half of the year.

As of December 31, 2011, Intermix had total assets of approximately €6.13 million and net assets of €3.16 million. In 2007, before the financial crisis, Intermix had annual sales of more than 30 million euros and EBIT of 2.16 million euros. For the full year last year, sales were 10.1 million euros and EBIT was 106,000 euros, and the company is expected to recover steadily in 2012.

"The current economic downturn in Europe has also given us the opportunity to 'hunt' internationally." Xiang Wenbo said.

At the beginning of the year, Sany Heavy Industry's acquisition of Putzmeister was regarded as a combination of "China*5656" and "World*5656", and the founder of Putzmeister, Schleissitt, called it a "Sino-German demonstration transaction", and Xiang Wenbo commented that this move advanced the internationalization process of Sany Heavy Industry by 5-10 years.

This acquisition will not only help Putzmeister extend the industrial chain, but also further help Sany Heavy Industry to promote its internationalization strategy. Sany Heavy Industry announced that (the acquisition will) significantly enhance the company's R&D and innovation capabilities, marketing service level and international brand influence in the field of concrete mixing machinery, and further enhance the internationalization level of the company's concrete machinery.