Chinese Construction Equipment Manufacturer Zoomlion Acquires CIFAA consortium led by Chinese construction machinery giant Changsha Zoomlion Heavy Industry Science & Technology Development Co. Ltd (Zoomlion), traded at the Shenzhen Stock Exchange, defeated main domestic rival Sany Heavy Industry Co. (Sany) to acquire Compagnia Italiana Forme Acciaio (CIFA), a leading concrete equipment manufacturer, which was sold by Italian private equity company Magenta, its majority shareholder, and other shareholders. Magenta acquired CIFA in July 2006.The purchase price for the transaction is EUR375.5 million, with EUR271 million equity contribution from the consortium members, and the remaining portion funded through non-recourse offshore debt. The transaction also involves a refinancing of CIFA's existing debt in the amount of approximately EUR116 million. On 10th July, Zoomlion held a shareholders meeting to approve the acquisition. The transaction is pending approvals from the Chinese and Italian authorities and is expected to close in the third quarter of 2008.Zoomlion will pay for a 60% stake, while its partners Chinese private equity firm Hony Capital (18.04%), Goldman Sachs Private Equity Group (12.92%) and Mandarin Capital Partners (9.04%), a joint venture between China Development Bank, the Export-Import Bank of China and Bank Intesa Sanpaolo, will hold the remaining 40%. The Mandarin fund was set up with the goal to assist Italian firms to invest in China and to convince Chinese major groups to choose Italy. The acquisition is the largest deal in Italy by a Chinese group to date.The combination will create the world's largest concrete machinery manufacturer with sales of more than EUR1.3 billion, ahead of German rival Putzmeister. The addition of CIFA will enable Zoomlion to expand its market leadership in concrete machinery to the mature European markets and to capture fast emerging markets such as Russia and India. The deal will help Zoomlion to strengthen its presence in the international market and expand its business in Europe and North America through CIFA's existing network in these markets.Zoomlion is a leading manufacturer and distributor of construction machinery in China. Its product portfolio consists of concrete machinery, cranes, road construction machinery and other types of construction machinery and products. Zoomlion is listed on Shenzhen Stock Exchange with a market capitalisation of approximately USD4.6 billion. Visit www.zoomlion.comCIFA is a leading concrete equipment manufacturer offering full-line concrete machinery including concrete pumps, concrete mixers, plants, formworks and precast segment moulds. Founded in 1928, CIFA is based in Senago near Milan and has four production sites in Italy, one in the US and one in Mexico. CIFA expects sales of EUR360 million in 2008, 65% of which abroad, and an EBITDA of EUR7 million. When the acquisition is concluded, CIFA will continue to be run by the same managers. Visit www.cifa.com 30/08.