Mandarin, Zoomlion to buy Italian water treatment firm

Zoomlion, a China-based construction machinery maker, will contribute EUR57 million, while MCP will cover the rest, according to a filing. The investment represents the third transaction from the Mandarin Capital Partners II (MCP II), which reached a first close of around EUR200 million in 2013. The fund is still in its fundraising stage with a target of EUR1 billion.

Ladurner family and the company's CEO Andreas Silvestri will retain the remaining 25%.

Founded in 1990, Ladurner provides urban solid waste treatment, renewable energy from solid and liquid waste and agricultural biomass production, civil and industrial wastewater treatment services in Europe. The firm's revenues are expected to exceed EUR70 million for the current financial year.

The new capital injection will allow the company to accelerate its growth through both acquisitions and organic expansion over the coming years, particularly in China, MCP said in a statement. Zoomlion, which manufacturers 65% of the country's civil waste colletion equipment, will support Ladurner's growth through leveraging its extensive network and providing an integrated solution to clients.

Founded in 1992, Zoomlion develops and manufactures equipment in the areas of agricultural, building, energy, environmental, and transport engineering.

In 2008, Zoomlion, supported by Hony Capital, Goldman Sachs and MCP, bought a 60% stake in an Italian concrete pump manufacturer CompagniaItalianaFormeAcciaio (CIFA) for EUR163 million. The PE investors subsequently fully exited the Zoomlion CIFA subsidiary to the parent company.

Zoomlion's revenues fell about 33% year-on-year to RMB25.9 billion ($4 billion) in 2014, while its net income came to RMB594 million, down from RMB3.8 billion in 2013.

MCP's second fund targets companies involved in healthcare, environmental technology, oil and gas and specialty chemicals. Industrial companies focused on product safety and energy savings are also of interest. Check sizes fall in the EUR30-50 million range for minority and majority stakes.

The GP has completed 10 investments in Chinese and Italian companies from its EUR328 million debut fund, raised in 2007.

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• Topics
• Greater China
• Industrials
• Buyouts
• Europe
• China
• manufacturing
• buyout
• Mandarin Capital Partners
• Outbound investment
• M&A
• Europe