Yep that is correct and confirmed. Putz and Sany now one company

Sany Heavy Industry Co. (600031), the construction-equipment maker run by China’s richest man, agreed to buy German concrete pump maker Putzmeister Holding GmbH in what they said is the largest Chinese-German transaction yet.

Sany and Chinese private equity company CITIC PE Advisors Ltd. will buy 100 percent of Putzmeister for an undisclosed price, according to an e-mailed statement today. Aichtal inGermany will become Sany’s new headquarter for concrete machinery and Norbert Scheuch will remain in his position as the head of Putzmeister under the Chinese owner.

Putzmeister, which has 3,000 employees and sales of 570 million euros ($751 million), provided concrete pumps to quell the Fukushima nuclear disaster in Japan last year and the Chernobyl meltdown in the 1980s. Chinese companies are increasingly hunting for European targets. Chinese solar-panel maker LDK Solar Co. plans to buy Germany’s Sunways AG (SWW) and Italian luxury-yacht builder Ferretti Group was sold to Shandong Heavy Industry Group-Weichai Group.

“With this merger Putzmeister and Sany will create a new and global market leader for concrete pumps,” said Liang Wengen, chairman and founder of Sany, in the statement.“Putzmeister will remain as an independent brand with its own management within the Sany group.”

To contact the reporter on this story: Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net

oh my ...

Please make sure all comments are positive, all negative comments will be deleted. Sany and Putzmeister are both great companies who have partnered with this web site as sponsors.

I am proud to brake this news to the industry.

Putzmeister Holding GmbH / Key word(s): Finance/
Putzmeister and Sany merge

DGAP-Media / 27.01.2012 / 16:43

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* Merger will create new global leader for concrete pumps.
* Largest Chinese-German transaction to date.
* Putzmeister founder Karl Schlecht: 'This is a global showcase
transaction'.

Aichtal/Germany, 27 January 2012 - Today Putzmeister Holding GmbH
('Putzmeister') and SANY Heavy Industry Co., Ltd ('Sany') announced the
signing of an agreement on the merger of both companies. Sany, together
with the Chinese Private Equity company CITIC PE Advisors (Hong Kong)
Limited as a minority shareholder, thereby acquires 100 per cent of
Putzmeister. The final closing of the deal is subject to approval by the
relevant authorities and the customary closing conditions. Both parties
agreed not to disclose the financial terms of the transaction.

Putzmeister develops, produces and sells construction machinery world-wide,
especially concrete pumps, for the building- and mining-industry, as well
as for tunnel construction and large-scale industrial projects. Sany, based
in Changsha, China, is a large Chinese producer of construction machinery
and market leader for concrete pumps in China, which is the largest and
fastest-growing market for concrete pumps and other industrial equipment
world-wide. The business activities of Putzmeister and Sany are highly
complementary geographically. The merger of the Chinese market leader in
concrete pumps with the leading provider in most markets outside of China
thus follows a clear strategic and industrial rationale: the creation of
the global market leader for concrete pumps.

Both partners benefit substantially from the combination. Sany's financial
strength secures Putzmeister's growth prospects and provides a significant
competitive advantage. Sany adds to its portfolio technologically
cutting-edge products and innovations 'Made in Germany' and acquires a
strong distribution and service network outside of China.

This transaction marks the first time that a large and well-known German
Mittelstand company decides to merge with a Chinese partner. Karl Schlecht,
founder of Putzmeister, said: 'This merger is a global showcase
transaction. Sany is one of the few large Chinese conglomerates which is
personally operated by the founder, who is also the majority shareholder.
In fact, Liang Wengen is one of China's most successful entrepreneurs. He
not only shares our entrepreneurial spirit, but also Putzmeister's visions
and corporate values.'

Aichtal/Germany will become Sany's new headquarter for concrete machinery
in the world outside China. Putzmeister will continue to operate with a
high degree of independence in day-to-day management. Sany will focus on
operations in China where Putzmeister will continue to be the premium
brand. Norbert Scheuch will remain in his position as CEO of Putzmeister
within Sany and will join the Sany executive board. The entire proceeds of
the transaction will be transferred to the benefit of the Karl Schlecht
Gemeinnützige Stiftung (KSG) and the Karl Schlecht Familienstiftung (KSF).

Liang Wengen, Chairman and founder of Sany, said: 'With this merger
Putzmeister and Sany will create a new and global market leader for
concrete pumps. Putzmeister will remain as an independent brand with its
own management within the Sany group. We are looking forward to work with
the Putzmeister management, which made this business so successful'.

Morgan Stanley acted as sole financial advisor to Putzmeister.

### END ###

About Putzmeister

Putzmeister Holding GmbH and its subsidiaries develop, produce, sell and
serve their customers world-wide with technically high-quality machines in
the following areas: Placing of concrete, truck-mounted concrete pumps,
stationary concrete pumps, stationary placing booms and accessories,
industrial technology, pipe delivery of industrial solids, concrete
placement and removal of excavated material in tunnels and underground,
robot and materials handling technology, mortar machines, plastering
machines, screed conveying, professional high-pressure cleaning, injection
and special applications. Putzmeister's end markets are construction,
mining and tunneling and pre-cast plants as well as large-scale industrial
projects, power station, sewage- and garbage-incinerating plants.

The company is headquartered in Aichtal, Germany. Last year the company
employed 3,000 people and generated about EUR 570 million in revenue.
Ownership of Putzmeister Holding GmbH is divided between Karl Schlecht
Gemeinnützige Stiftung (99 per cent) and Karl Schlecht Familienstiftung (1
per cent).

About Sany

SANY Heavy Industry Co., Ltd was founded in 1994 as a privately held
company. Its parent company, SANY Group, today it has grown into a global
corporation with about 70,000 employees in more than 150 countries. SANY
Heavy Industry Co., Ltd offers almost the complete scope range of
construction machines, such as concrete pumps, road construction machines,
container handler, crane and crane vehicles, earth drilling-, harbor-,
mining- and earth-moving machinery.

On 1 January 2009, Sany Heavy Industry has singed a contract to build a
Research and Development facility, linked to a production facility near
Cologne, Germany - with a total investment of EUR 100 million. This was the
largest investment of a Chinese company in Europe. Chinese Prime Minster
Wen Jiabao and German Chancellor Angela Merkel attended the signing.

About CITIC PE Advisors (Hong Kong) Limited

CITIC PE Advisors (Hong Kong) is an affiliate of CITIC Group Corporation, a
Chinese corporation that offers banking, financial, manufacturing, and
communication services through its subsidiaries.

Press Contact

Sarah Rötzer
CNC - Communications & Network Consulting AG
T: +49 (0)89 599 458 - 113 begin_of_the_skype_highlighting +49 (0)89 599 458 - 113 end_of_the_skype_highlighting
E: Sarah.Roetzer@cnc-communications.com

Alexander Styles
CNC - Communications & Network Consulting AG
T: +49 (0)69 5060 375 - 79 begin_of_the_skype_highlighting +49 (0)69 5060 375 - 79 end_of_the_skype_highlighting
E: Alexander.Styles@cnc-communications.com


End of Media Release

---------------------------------------------------------------------

27.01.2012 Dissemination of a Press Release, transmitted by DGAP - a
company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

---------------------------------------------------------------------


154333 27.01.2012

Karl Schlecht founder of Putzmeister, said:

'This merger is a global showcase
transaction. Sany is one of the few large Chinese conglomerates which is
personally operated by the founder, who is also the majority shareholder.
In fact, Liang Wengen is one of China's most successful entrepreneurs. He
not only shares our entrepreneurial spirit, but also Putzmeister's visions
and corporate values.'

Pany, or Sutzmiester??? Inquiring minds want to know!!

I think this is a great Merge, I love both of these companies and both of them support this web site.

What does Schwings have to do with this?  I heard that was just a rumor???

Well what'dya know?

After months of rumors it looks as if the insiders had a right sniffy nose!

What does it all mean?

After many years where Challenge, Thomsen, Scheele, Elba, Reich and many others bit the bullet, ane the pump world was ruled by PM and Schwing and Cifa, and then came along JunJin and friends, and then Sany and friends....... and so what?

Nothing has changed!

CIFA is there under Chinese rule.

PM is there under Chineses rule (as it seems)

Schwing is there under Chinese rule (yes/no/don't know  ?)

It's not sad (like somebody said) that Karl Schlecht has sold out.

Karl had an idea and a machine and had to make a living. Like all of us.

So he could sell a pump, or a spare part, or perhaps a joint venture partnership ..... or perhaps his whold company! so what?

So what the hell, bizznz is bizznz!

A Sany-PM will still be more expensive than a Zoom-Cifa, but still cheaper than a Schwing-XYZ.

So what's new in the world?

Great move by the germans selling out before the crash. Considering the eurozone currency is on the brink of meltdown, this move is a given.

The ENR report about Schwing does not hold any merit guys. He came to speak with Tom O'Malley at the Schwing booth and Tom didn't give him this information. It was fabricated. No Schwing deal, sorry guys.

concreteluvr this is the only explaination.

I know many personal friends in europe who were avid PM people, and there was talk about a future merger, though not with Putzmeister. Sany was (suspected) in talks for a merger with Schwing. However considering Schwing is in financial predicament the Putzmeister deal may have been more attractive for the Chinese.

The only logical conclusion was the company (PM) was affraid of a euro crash which would render it worthless to the remainder of the world. In a rebuilding economy machines will be worthless to the rest of the world.

So the merger gives them some stability to ensure survival and keeps their machine value up as well as opportunity to expand further worldwise. Considering components were already coming out of china, it was a no brainer.

On the flip side, I think its a bad move right now for China to move into europe, they have put alot at stake at very uncertain times.

In a strange twist of events, say the euro currency did crash this might actually weaken the Chinese economy and stop progressive Chinese world domination - of course at the cost of world depression.

hey Pumpo,

if you know that things are clear cut Tbecause of Euro weakness and things ......  did you think about Karl Schlecht is 76 or 77 years old and perhaps he just wanted to RELAX a bit and still let his "baby" continue under new management.

SANY Management can't be that bad.

I guess when you bank accout has a bottom less pit, you guys know what they say money talks and BS walks

I think Gerhard and Karl are very smart businessment. With great products. Best two products in the industry worldwide. Worked very hard for many years to be at this level. Why would both sell out at the same time. Think they don't know something??? There is a big surprise for the two purchasers. Watch it play out.

Zoomlion a Chinese Company spend 400 million for a fish bowl in CIFA thinking the CIFA name would bring some integrity their way but it did not help. I think that Schwing and Putz deals will play out the same for Sany and XCMB. They are buying something that is not there anymore. Get technology but no worth or someone Like Liebherr or other German company would have been in this bid.

Karl is way to sharp and proud to have made a deal like this without being the 100% winner. You will see some of the smaller manufactures start eating up market share in the USA and Europe for sure.

Yes you are right, the loyalty for Putzmeister only extends to a small group of people - they are and always will be diehards. Considering there is a flood of used equipment nowadays and so many concrete pump manufacturers competing against eachother, there was no way Putzmeisters success could be sustained. Hense as dissapointing as this seems, it is a good move.

IT may also be the case of history repeating itself. Karl once said (after his takeover of WIBAU) the biggest mistake is to take over an ailing company, today it is evident PM better days are long gone. Maybe Karl foresaw something similar.

One thing is certain however, it is a matter of time when the best people (past and present) of this company jump ship. The brand will never be the same.

As we all know there are only 2 types of pumps being produced worldwide. Schwing and everyone else. Putz has already given up all their patends to the Koreans and now the Chinese. They are the only ones who have nothing to lose. Schwing is a huge collector of patends and is very smart to hang onto to these. Now that Putz has done this there is absolutely no reason for Schwing to make a move. Schwing was smart and went through Chapter 11 and is now in good shape to move forward. On the other hand I am sure Karl has invested a lot of his own personal money into his company and is tired of tying to keep things going when every other manufacturer except Schwing copies his design. One less pump manufacturer and one less sponsor. There you have it, my theory.

Schwing is facing very real and serious problems of their own - don't you worry about that.

When your competitor sells out to the rich, you WILL be sweating your buns off on the next move - no matter what patents you hold.

This will cause a chain reaction of events, The schwing management right now would be thinking of a plan -  you are not competing against a pump company now, you are competing against a real world heavy machinery manufacturer (and CASHED UP AT THAT!)

The only thing that would destroy this venture is LIEBHERR going to war against SANY or a euro dollar collapse.

The innevitibilty is Schwing will sell eventually only because in ordr to be competitive now they must acquire or be aquired.

I understand what you are saying, but I still look at it as one less pump manufacturer or one less competitor. I think Putz will lose some of it's customer base.

How many of us were upset when we thought it was Schwing. There is going to be a lot of people not happy with this merge including loyal employees and customers.

WTF , didnt c that coming, its the old saying in england if u can't beat them join them

Todd Jr. If in fact Schwing did not sell. You are right on. You are very close to the Schwing thing and grew up with it. So I need to take what you say to the bank. But in Germany there are people saying they did the deal.

If not done. Then you are right in every word. Either way Putz will lose a huge part of their loyal customer base now in this market and others. As for the patents, rights. You are 100 percent correct. They fought tooth and nail to protect themselves when Daewoo, Jun Jin and others entered this market in the mid and late 90's. Trying to sue for almost every part on the pumps they brought in.

But the license agreements were over and the patents revealed in those agreements. You bring up a strong point for sure.

I hope you are right in that Schwing did not sell. And if not and they can financially make it and get parts back on the shelf. They will not be able to keep up with orders worldwide.

Thanks Junior. Great input.

He Todd Jr. Just thinking. Didnt Schwing also have a patent on the S Valve at one time? Putz got the S valve from Schwing I believe. Then everyone got it and thats how it got to where it is today.

I stand with Todd Jr.. IF schwing is not sold then they are the only 'serious' german pumpbuilder left.. And I know a lot of pump owners that think the only way is the german way.. I think it depends a lot on where they will take their production. Will the whole of putz stay in germany would be possitive but knowing the chinees.. It will be a lot cheaper to move the production to china.

Re post in two years !

It will change, I thought Putz was very aggresive in sales, we purchase a 36z at a very good price.

I think there is one smart China man, buying into a very viable company. The Koreans will have a run for their money.

I also THINK Putz will stay the same for a long time, but who knows, one thing is they will get all the advanced tech that money can afford. Production will probably stay were it is for now as they realize America builds with a great pride.

If Sany invested so much in the Americas why change, you win the hearts then conquer.

Actually a smarter purchase than Schwing, so shows that Schwing may go down or atleast suffer more.

Parts ya, Sching took 2 months to get an outrigger rear leg, not bad. Definatly an aquired taste. We have 4 of them.

http://www.boersen-zeitung.de/index.php?li=1&artid=2012020096

I think that is about 800 million

The truth is we still don't know is going to happen with Schwing and probably won't know for another couple of weeks. There some big changes going to happen in our lifetime for sure.

I agree, not bad changes we all hope, but smart changes. I really can't see Schwing gooing down, just blowing hot air but can see an injection of moneys needed to advance and stay competitive for sure.

Why would Sany who just invest over 125 million in New Facilities in USA and Germany each keep all four open in these times? 2012 is predicted to be very slow in pump sales world wide and in China as well. There is no forseeable future for pumps to pick up production. Especially in North America and Europe.

Hate to see this. If and when the Schwing deal is finally announced. I think you will see a lot of guys looking to small manufactures in Germany and other places. I think some of the smaller guys will surface and be able to give more attention to this industry in the states.

I guess several weeks ago when cp.com was to have a huge announcement it was an understatement. I would have to guess that knowing all this is going on in this industry the manufactures must have asked that no release happen until said.

Gotta give huge credit to CP.com for being a pro and not releasing this until the facts were on the table. I am sure from seeing the posts then and hearing this news now about both manufactures it was a hard thing to keep off the board. Especially while we were speculating and hearing things from all over.

If I am a sponsor you can feel now to have trust in this site and your sponsorship dollars. I have been a critic here and a positive poster. This is a hats off the the site for honoring your commitment to your sponsors and others.

Nicely said Concreteluvr!! Todd you are doing a fantastic job for our industry.

A wise man once told me that " Those with the gold make the rules" and China currently has the gold.  The only markets buying pumps, of any significance are China and India.  There was no way for either to break into the worlds largest construction market without so called mergers or acquisitions.  The Chinese government was not going to let either one of these manufacturers into their market.  The way I now see it there will be one less concrete pump brand in North America, and that will probably be Sany.  I hope that Putzmeister and Schwing will continue to manufacture their equipment lines without Chinese interference for the time being.  Hopefully the parts shelves at both of these companies will become better stocked. Schwing and Putmeister will now have some place to sell their equipment, and the Chinese manufacturers have aquired reptable manufacturing names to sell their equipment worldwide. This should put people back to work in Equope and the United States.   These deals with the Chinese companies were inevitable.  These situations have come up in the past and they will come up in the future, ex. German concrete pumps, Japanse and Korean automobile manufacturers, Honduran shoes, Mexican auto parts, and so on and so forth.  Good luck to both new ventures and I hope that it works for all concerned.  Rember "THOSE WITH THE GOLD MAKE THE RULES'. 

in my opinion, Sany is becoming too big too fast! Where were they 10 years ago? CAT, Komatsu and Liebherr have grown into what they are today over a period of 30,40 or more even more years.

I agree in allot of ways, I wonder if times have changed from that way of thinking though. I see owners more and more micro managing their pet projects, just a thought.

This all goes back to NAFTA IS WAS THE BEGINING OF THE END.