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Putzmeister and Sany Heavy Industry merge

Putzmeister Holding GmbH / Key word(s): Finance/ 
Putzmeister and Sany merge 
 
DGAP-Media / 27.01.2012 / 16:43 
 
=-------------------------------------------------------------------- 
 
* Merger will create new global leader for concrete pumps. 
* Largest Chinese-German transaction to date. 
* Putzmeister founder Karl Schlecht: 'This is a global showcase 
transaction'. 
 
Aichtal/Germany, 27 January 2012 - Today Putzmeister Holding GmbH 
('Putzmeister') and SANY Heavy Industry Co., Ltd ('Sany') announced the 
signing of an agreement on the merger of both companies. Sany, together 
with the Chinese Private Equity company CITIC PE Advisors (Hong Kong) 
Limited as a minority shareholder, thereby acquires 100 per cent of 
Putzmeister. The final closing of the deal is subject to approval by the 
relevant authorities and the customary closing conditions. Both parties 
agreed not to disclose the financial terms of the transaction. 
 
Putzmeister develops, produces and sells construction machinery world-wide, 
especially concrete pumps, for the building- and mining-industry, as well 
as for tunnel construction and large-scale industrial projects. Sany, based 
in Changsha, China, is a large Chinese producer of construction machinery 
and market leader for concrete pumps in China, which is the largest and 
fastest-growing market for concrete pumps and other industrial equipment 
world-wide. The business activities of Putzmeister and Sany are highly 
complementary geographically. The merger of the Chinese market leader in 
concrete pumps with the leading provider in most markets outside of China 
thus follows a clear strategic and industrial rationale: the creation of 
the global market leader for concrete pumps. 
 
Both partners benefit substantially from the combination. Sany's financial 
strength secures Putzmeister's growth prospects and provides a significant 
competitive advantage. Sany adds to its portfolio technologically 
cutting-edge products and innovations 'Made in Germany' and acquires a 
strong distribution and service network outside of China. 
 
This transaction marks the first time that a large and well-known German 
Mittelstand company decides to merge with a Chinese partner. Karl Schlecht, 
founder of Putzmeister, said: 'This merger is a global showcase 
transaction. Sany is one of the few large Chinese conglomerates which is 
personally operated by the founder, who is also the majority shareholder. 
In fact, Liang Wengen is one of China's most successful entrepreneurs. He 
not only shares our entrepreneurial spirit, but also Putzmeister's visions 
and corporate values.' 
 
Aichtal/Germany will become Sany's new headquarter for concrete machinery 
in the world outside China. Putzmeister will continue to operate with a 
high degree of independence in day-to-day management. Sany will focus on 
operations in China where Putzmeister will continue to be the premium 
brand. Norbert Scheuch will remain in his position as CEO of Putzmeister 
within Sany and will join the Sany executive board. The entire proceeds of 
the transaction will be transferred to the benefit of the Karl Schlecht 
Gemeinnützige Stiftung (KSG) and the Karl Schlecht Familienstiftung (KSF). 
 
Liang Wengen, Chairman and founder of Sany, said: 'With this merger 
Putzmeister and Sany will create a new and global market leader for 
concrete pumps. Putzmeister will remain as an independent brand with its 
own management within the Sany group. We are looking forward to work with 
the Putzmeister management, which made this business so successful'. 
 
Morgan Stanley acted as sole financial advisor to Putzmeister. 
 
### END ### 
 
About Putzmeister 
 
Putzmeister Holding GmbH and its subsidiaries develop, produce, sell and 
serve their customers world-wide with technically high-quality machines in 
the following areas: Placing of concrete, truck-mounted concrete pumps, 
stationary concrete pumps, stationary placing booms and accessories, 
industrial technology, pipe delivery of industrial solids, concrete 
placement and removal of excavated material in tunnels and underground, 
robot and materials handling technology, mortar machines, plastering 
machines, screed conveying, professional high-pressure cleaning, injection 
and special applications. Putzmeister's end markets are construction, 
mining and tunneling and pre-cast plants as well as large-scale industrial 
projects, power station, sewage- and garbage-incinerating plants. 
 
The company is headquartered in Aichtal, Germany. Last year the company 
employed 3,000 people and generated about EUR 570 million in revenue. 
Ownership of Putzmeister Holding GmbH is divided between Karl Schlecht 
Gemeinnützige Stiftung (99 per cent) and Karl Schlecht Familienstiftung (1 
per cent). 
 
About Sany 
 
SANY Heavy Industry Co., Ltd was founded in 1994 as a privately held 
company. Its parent company, SANY Group, today it has grown into a global 
corporation with about 70,000 employees in more than 150 countries. SANY 
Heavy Industry Co., Ltd offers almost the complete scope range of 
construction machines, such as concrete pumps, road construction machines, 
container handler, crane and crane vehicles, earth drilling-, harbor-, 
mining- and earth-moving machinery. 
 
On 1 January 2009, Sany Heavy Industry has singed a contract to build a 
Research and Development facility, linked to a production facility near 
Cologne, Germany - with a total investment of EUR 100 million. This was the 
largest investment of a Chinese company in Europe. Chinese Prime Minster 
Wen Jiabao and German Chancellor Angela Merkel attended the signing. 
 
About CITIC PE Advisors (Hong Kong) Limited 
 
CITIC PE Advisors (Hong Kong) is an affiliate of CITIC Group Corporation, a 
Chinese corporation that offers banking, financial, manufacturing, and 
communication services through its subsidiaries. 
 
Press Contact 
 
Sarah Rötzer 
CNC - Communications & Network Consulting AG 
T: +49 (0)89 599 458 - 113 
E: Sarah.Roetzer@cnc-communications.com 
 
Alexander Styles 
CNC - Communications & Network Consulting AG 
T: +49 (0)69 5060 375 - 79 
E: Alexander.Styles@cnc-communications.com 
 
 
End of Media Release 
 
=-------------------------------------------------------------------- 
 
27.01.2012 Dissemination of a Press Release, transmitted by DGAP - a 
company of EquityStory AG. 
The issuer is solely responsible for the content of this announcement. 
 
DGAP's Distribution Services include Regulatory Announcements, 
Financial/Corporate News and Press Releases. 
Media archive at www.dgap-medientreff.de and www.dgap.de 
 
=-------------------------------------------------------------------- 
 
 
154333 27.01.2012 
 

(END) Dow Jones Newswires

January 27, 2012 10:43 ET (15:43 GMT)

© 2012 Dow Jones News
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