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Zoomlion controls the purchase of Chery heavy industry high-level grafting agricultural machinery

Zoomlion controls the purchase of Chery heavy industry high-level grafting agricultural machinery

China Construction Machinery Information

repeat the above steps for 3~4 times to completely eliminate the gas in the system If it is still impossible to eliminate it, exhaust it according to the following methods: open the front door after shutdown, unscrew the large nut on the front end face of the oil pump with the wrench attached, and then turn on the machine to drain the oil. After the outflow of oil is stable, turn off the machine and screw on the nut Less than half a month after purchasing a 35% stake in raxtar, the leading international elevator company in the Netherlands, Zhan Chunxin, chairman of Zoomlion, set foot in Beijing again. This time, he targeted Chery heavy industry, a domestic agricultural machinery star

on August 20, Zoomlion and Hony capital jointly announced to the media that they would acquire 80% equity of Chery heavy industry in Beijing. Zoomlion invested 2.088 billion yuan to acquire 1.8 billion shares of Chery heavy industry, accounting for 60%, while Hony capital won 600million shares of Chery heavy industry with 696 million yuan, accounting for 20%

with the acquisition of Chery heavy industry, Zoomlion's long planned strategy to enter the field of agricultural machinery was officially implemented. Behind the strategic transformation, Zoomlion also has its own helplessness. The downturn in the whole construction machinery industry since 2012 also made Zoomlion, as the leader, feel chilly. In 2013 and 2014, the net profit of the company was 3.839 billion yuan and 396 million yuan respectively, with a year-on-year decrease of 47% and 33% respectively

the agricultural machinery industry benefits from the promotion of agricultural modernization and the support of national policies. At present, it is still in the "blue ocean" of the industry. Taking advantage of the structural characteristics of the machine, "we hope that the procurement volume is more than 10 times that of the Beijing Tianjin Intercity Railway. Through the merger and acquisition of Chery heavy industry, we will graft the advanced experience and resources accumulated by Zoomlion in the construction machinery industry to the agricultural machinery field, integrate the advantageous resources of both sides, enter the high-end market of the agricultural machinery industry, break the monopoly of multinational leaders in this area, and sprint to the leading position in the agricultural machinery industry." Zhan Chunxin said

Hony capital's "dual role"

"the success of this acquisition is due to the good partner of Hony capital." At the media meeting on August 20, hewenjin, vice president of Zoomlion, said that Hony capital was both an intermediary and a participant in the M & a transaction

Hony capital is the strategic investment shareholder of Zoomlion, and has previously worked closely with the company for many times. In 2008, it spent 271million euros with Zoomlion, Goldman Sachs, Mandalin and others to acquire CIFA, the global concrete leader, making the latter a holding subsidiary of Zoomlion

"our initial contact with Chery heavy industry was indeed operated by us. Before that, we have seen many agricultural machinery enterprises, and Chery is not the first or the only one." Chen Wenru, managing director of Hony capital, revealed. Thanks to the successful cooperation during the acquisition of CIFA, Hony capital has a good understanding of the strategic thinking of Zoomlion's M & A. "therefore, we have grasped two principles in the selection of targets, one is to conform to the strategy of Zoomlion, and the other is to have good fundamentals." Chen Wen said

Chery heavy industry really meets the needs of Zoomlion. It took only three years for this company, which was founded in 2011, to stand out from the industry and become the third agricultural machinery enterprise in the industry after Foton Lovol and the first tractor. The financial report shows that in 2013 and 2014, Chery heavy industry's revenue was 3.862 billion yuan and 2.113 billion yuan respectively, and its net profit was 90.663 million yuan and 15.2014 million yuan respectively. After many contacts, Hony capital believed that Chery heavy's values, cultural concepts and many other core factors were in line with Zoomlion. Then, there was the first meeting between Zhan Chunxin and Wang Jinfu, both deputies to the National People's Congress, in Beijing during the "two sessions" of the National People's Congress in March 2014. According to people familiar with the matter, the two sides talked happily at that time and soon set the tone of cooperation

engineering machinery experience "high grafting"

Zoomlion has been planning to enter the agricultural machinery industry for many years. Previously, at the end of 2013, the company invested in the construction of the Agricultural Machinery Industrial Park in Bishan County, Chongqing, officially taking the first step in the agricultural machinery sector

it is reported that the current situation of the domestic agricultural machinery industry is quite similar to the construction machinery industry 20 years ago. At that time, most of the market of China's construction machinery industry was occupied by international giants such as Caterpillar and Komatsu, especially in the high-end demand market. The market share of multinational giants was even as high as 95%. They were at the top of the industrial chain and earned huge profits in the industry, while domestic enterprises could only shrink in the middle and low-end market, with small and disordered brands and meager profits. However, with the rise of national construction machinery brands such as Zoomlion and Sany Heavy Industry, this industry pattern has been completely changed in more than a decade. Now, 90% of the high-end market share of the domestic construction machinery industry has been recaptured by national brands

"the same is true in today's domestic agricultural machinery market. Although Foton Lovol and Yituo have a revenue of more than 10 billion, their products are mostly concentrated in the middle and low-end market with low gross profit, and the high-end market is still controlled by foreign giants, but this is exactly the opportunity for domestic enterprises." Wang Jinfu said

for the doubts about the Acquisition Premium in the market, hewenjin, vice president of Zoomlion, said that what 2.088 billion yuan bought was only "visible things", "and Chery heavy industry's technology accumulation, market foreshadowing, and knowledge of rural market demand, these" invisible things "are also valuable."

"from the perspective of acquiring PE and Pb, the acquisition price is relatively reasonable among comparable companies in the same industry, not to mention our holding acquisition, which should have a certain premium." He Wenjin explained

Zhan Chunxin revealed that after the acquisition, Chery heavy's original excavator, forklift and other businesses will be stripped off to the relevant business units of Zoomlion to operate, so as to ensure that Chery heavy focuses on the agricultural machinery business, "and the existing agricultural machinery business of Zoomlion Heavy, including Chongqing Bishan Agricultural Machinery Industrial Park, will also be integrated into the unified operation of Chery heavy."

the author learned that Zoomlion is currently looking for M & A targets for high-end agricultural machinery enterprises abroad, and has a number of intended projects in reserve

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