Luxury Yacht Maker Ferretti Acquired By Chinese Firm Shandong Heavy Industry Group

Shandong Heavy Industry Group acquires one of the World’s premier yacht builders; the Ferretti Group. This is another example of Chinese firms acquiring assets abroad.

The Ferretti Group, the parent company of CRN, Ferretti Yachts, Ferretti Custom Line, and five other Italian yacht brands, formally announced it is being acquired by China-based Shandong Heavy Industry Group.

David Nealis President Blue Bridge

Shandong Heavy Industry Group, a.k.a. SHIG-Weichai Group, is spending €374 million ($477.8 million) to acquire controlling interest from Ferretti Group’s creditors. Specifically, the sum is comprised of debt financing of €196 million (about $250.6 million) and an equity investment of €178 million (about $227.6 million), SHIG-Weichai Group will have a 75-percent stake in Ferretti Group.The remaining 25-percent will be held Royal Bank of Scotland, Strategic Value Partners, and Oaktree Capital Management.

While SHIG-Weichai Group is known for manufacturing construction machinery and other heavy-duty industrial products, but it also has existing interest in the boating business. In 2009 it acquired Moteurs Baudouin which supplies ferries, trawlers, and yachts with inboard diesel engines, gearboxes, propellers shafts, and propellers.

 SHIG-Weichai Group intends to keep all Ferretti production in Italy and retain the present management team.

Tan Xuguang, chairman of SHIG-Weichai Group, stated that they intend to continue acquiring foreign assets as well as assets within China.