Sany Heavy Industry Completes Putzmeister Acquisition A Global Market Leader Is Born

■The Chinese and German governments have completed the approval process.
■Putzmeister CEO Norbert Scheuch will be nominated to the Board of Directors at Sany Heavy Industry. (Must meet shareholder approval)
■Sany Heavy Industry has indentified operational objectives of Putzmeister in the coming years.

“This is a special day for me as I return to Germany and visit Putzmeister for the first time. Twenty years ago, I already knew the incredible history of Putzmeister’s development, but this is still my first time to come here, and Putzmeister is better than I imagined,” said Liang Wengen, Chairman of Sany Heavy Industry.

On April 17th SANY Heavy Industry Co, Ltd (SANY) and Putzmeister Holding GmbH (Putzmeister) held a press conference in Germany to announce the completion of SANY’s acquisition of Putzmeister.

■The Chinese and German governments have completed the acquisition approval procedures.

On January 20, 2012, Putzmeister, SANY and CITIC Private Equity Advisors (Hong Kong) Co, Ltd (CITIC PE) signed an agreement on the merger of the three companies.

On January 31, SANY held a press conference officially announcing the acquisition of Putzmeister, the world’s leading concrete machinery manufacturer.

The State Commerce Department decided on April 1 not to conduct further investigation of the acquisition, and on April 10, the acquisition received approval from China’s National Development and Reform Commission.

On April 16, SANY and CITIC PE completed the transfer of Putzmeister shares, with SANY acquiring a 90% majority stake and CITIC PE receiving 10% of the company.

SANY and Putzmeister have achieved significant progress with the completion of the share transfer. The Chinese and German governments have approved the merger, and Putzmeister will maintain its operational independence. Furthermore, Aichtal, Germany, will become SANY's new headquarters for concrete machinery outside China.

Secondly, Putzmeister CEO Norbert Scheuch will be nominated to the Board of Directors of SANY Heavy Industry. Scheuch will remain CEO of Putzmeister and lead the company’s development. Additionally, with his German team, Scheuch will be responsible for integrating SANY’s domestic and international concrete machinery business.

SANY also announced Putzmeister’s 2012 sales target of €700 million. In 2016, the sales target is €2 billion, double the best sales figures in Putzmeister’s history.

“I would like to take this opportunity to thank Mr. Schlecht. You have created this exceptional enterprise, and the torch will be passed to the current management teams at SANY and Putzmeister. I am most grateful for the managers and employees of Putzmeister, especially CEO Norbert Scheuch. You are a valuable asset and trusted friend of SANY,” said SANY Heavy Industry Chairman Liang Wengen.

SANY Heavy Industry Chairman Liang Wengen thanked CITIC Fund Chairman Liu Lefei, saying: “Without your support it would not have been possible to complete this merger in such a short time.”

■A Global Market Leader is Born.

To further strengthen the integration of the two companies, SANY has identified methods that will help the companies integrate in a quick and healthy manner.

With a current global urbanization rate of only 50% and an industrialization rate under 30%, the next 20 years will be an historical period for the machinery manufacturing industry. SANY’s mid-range plan aims to achieve a sales target of €36.5 billion in 2017. Putzmeister will make a positive contribution to SANY’s development.

“In the future, Putzmeister will not only continue to lead the global market in the company’s current product lines, but will also broaden its product offerings to become the best provider of other types of equipment. Putzmeister will continue to sell its own products while providing SANY’s products to the global market. Rather than decreasing the size of the Putzmeister’s workforce, SANY intends to create more employment opportunities,” said SANY Heavy Industry Chairman Liang Wengen at the press conference.

“SANY is an outstanding Chinese enterprise with high drive and impressive goals. We have high expectations for our future together,” said Putzmeister CEO Norbert Scheuch.

Putzmeister founder Karl Schlecht pointed out that this merger represents the first time an enterprise from China has acquired a famous medium-sized German industrial company. He described the merger as “a model transaction between China and Germany” that has received positive acknowledgement from the industry.

The acquisition of Putzmeister is a major benefit for SANY’s long-term development and a milestone in the global machinery industry. SANY has seized a rare opportunity for a cross-border merger, and as the process of internationalization accelerates, SANY will become the leading global construction machinery enterprise.

Hermann Simon, the world's top management guru, is of the opinion that after decades of development, Putzmeister has established a global service and sales system that SANY Heavy Industry can use to accelerate its pace of internationalization.