Chinese-Shandong Heavy Buys Italy's Luxury Yachts Maker Ferretti

Ferretti to be sold for £247 Million to a Chinese state-owned conglomerate. The group includes CRN which builds 85 metre mega-yachts for oligarchs. Riva the 170 year old company plus 6 other famous brands.
Total brands are Ferretti Yachts, Pershing, Itama, Bertram, Riva, Mochi Craft, Ferretti Custom Line, CRN.


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Ferretti Group is one of the world leaders in design, construction and sale of luxury motoryachts, with a unique portfolio of some of the most exclusive, prestigious brands in the nautical world: Ferretti Yachts, Pershing, Riva, Itama, Bertram, Mochi Craft, CRN and Custom Line.

Ferretti Group also owns two of companies operating in sectors active in the production of furnishing pieces for the nautical industry, which provide an important competitive advantage, by making it possible to protect the quality of the entire production chain. These companies sell components also to the external market: Diesse Arredamenti S.p.A., acquired in 2002, specialized in the production and marketing of furnishing components for yachts; Zago S.p.A., acquired in 2003, specialized in producing and assembling manufactured pieces and furnishings in wood for megayachts measuring over 100 feet in length.
Ferretti Group employees, led by Chairman Norberto Ferretti and CEO Giancarlo Galeone, share a continuous quest towards quality, technological excellence, top performance, an exclusive, innovative design, maximising comfort and taking painstaking care over detail. This common, daily commitment has taken Ferretti Group to the very heights of the nautical world.

The Ferretti Group is also present in Asia, through a representative branch Shanghai, in Miami in the United States with Ferretti Group North America and in Brasil with Ferretti Group Brasil based in San Paulo.

Ferretti Group today, after forty three years of success, is an example of an industrial pole developed by acquiring and integrating yacht builders with highly complementary characteristics.

Since 1968, the year in which, in a changing world, Norberto Ferretti launched his own challenge to the sea: 43 years of continuous improvements, of commitment and passion, of increasingly more innovative, higher performing, technological, safer yachts. 43 years of challenges, success and farsightedness, represented by the refined elegance of Ferretti Group yachts, element of union between man and the sea.
-----------------------------------Bloomberg report
Shandong Heavy Industry Group- Weichai Group agreed to buy 75 percent of Ferretti Group, the world’s largest maker of luxury yachts, as China’s rising wealth spurs sales of high-end goods.
State-controlled Shandong Heavy will pay 178 million euros ($228 million) for the stake, Tan Chengyi, head of the agency overseeing Shandong province-owned companies, said today at a signing ceremony in Jinan, China. Royal Bank of Scotland Group Plc and Strategic Value Partners LLC will each own 12.5 percent of the yachtmaker, said John Davison, the global head of RBS’s strategic investments group.
Shandong Heavy, which makes excavators, tractors and engines, plans to help Forli, Italy-based Ferretti expand in China as an economic growth rate of about 9 percent creates more wealthy individuals and greater demand for yachts, supercars and designer handbags. China’s number of millionaire households jumped 31 percent in 2010 to 1.11 million, according to Boston Consulting Group.
The Chinese company will take on about 580 million euros of Ferretti (FER) debt, Davison said. The yachtmaker will also raise 100 million euros in new equity and get another 80 million euros of loans, he said.
Ferretti, the maker of 115-foot Riva yachts, will retain its existing management as well as its headquarters and production facilities in Italy, according to a statement. The company is being sold by lenders.
China Demand
While there were as many as 400 dollar billionaires in China, the country only had about 100 Chinese-owned yachts longer than 60 feet as of May, according to Rupert Hoogewerf, who compiles the Hurun Report of wealthy Chinese. There were more than 7,000 yachts that size in the U.S. in 2006.
The potential demand in China has lured overseas builders such as Azimut Yachts, Sunseeker International Ltd. and Brunswick Corp. (BC) Domestic companies have also begun building superyachts including Xiamen Hangsheng Yacht Building Co.
Emerging markets are “a key area of potential growth for Ferretti,” Shandong Heavy Chairman Tan Xuguang said in the statement. “The group will cooperate closely with this world- renowned yachtmaker, providing Ferretti with new channels to market and capital support.”
Listed units of Shandong Heavy, which is controlled by the government of Shandong province, include Weichai Power Co. (2338) The engine-maker has fallen 21 percent in the past year in Hong Kong, about in line with the Hang Seng Index.

source http://www.bloomberg.com