China has laid claim to a pillar of German industry after Sany Heavy Industry, the country’s largest construction equipment group, said it would acquire Putzmeister, a Mittelstand company that makes high-tech concrete pumps.
The deal is among the largest in which a Chinese company acquires one of the family-owned, niche-focused, German engineering groups – the backbone of the German economy. The term Mittelstand covers Germany’s legion of small and medium-sized family groups.
Sany, whose chairman is China’s richest man, and Citic PE Advisors, a Chinese private equity company, will acquire all of Putzmeister, with Citic retaining a minority shareholding. Sany and Citic will pay €360m for the business, as well as taking on Putzmeister’s debt, giving the company an enterprise value of just over €500m.* Sany will pay 90 per cent and Citic Capital 10 per cent.