Please select your home edition
Edition
Mackay Boats

Chinese Weichai Group takes controlling interest in Ferretti

by MarineBusiness-World.com on 11 Jan 2012
Weichai Group now takes a 75% interest in the world’s largest luxury yacht builder, Ferretti. Ferretti S.p.A http://www.ferrettigroup.com
China's Shandong Heavy Industry, which makes commercial vehicles, construction machinery and other heavy-duty industrial products and its subsidiary Weichai Group (SHIGWeichai Group) has announced that it has reached agreements with the major creditors of the world’s largest luxury yacht maker, the Italian company Ferretti Group ('Ferretti'), to acquire a controlling interest (75%) in Ferretti by participating in Ferretti's debt restructuring.

Through a total investment of 374 million Euros, including equity investment of 178 million Euros and provision of debt financing of 196 million Euros, SHIG-Weichai Group will acquire a 75% interest in the yacht maker after the completion of the debt restructuring procedures. Existing creditors will acquire the remaining 25% interest in Ferretti through a 25 million Euros equity injection and debt to equity swap.

Through the acquisition, Ferretti's capital structure will be fully restructured with equity capital increase by 100 million euros and total debts reduce to a reasonable level at around 120 million euros. The business will enjoy a strong capital base which will help drive its long-term development plans.

Ferretti, the world’s largest luxury yacht manufacturer, boasts one of the worlds most advanced naval research and development centres (AYT the Ferretti Groups Advanced Yacht Technology) and a team of architects and designers (Centro Stile Ferrettigroup). It also has a comprehensive global supply chain, which includes more than 800 suppliers, as well as some of the world's most advanced yacht manufacturing systems.

Ferretti has eight highly regarded and recognized yacht brands and owns a total of eight shipyards in Italy as well as in Miami, USA, and employs nearly 2,000 employees.

Leveraging its ample resources, SHIG-Weichai aims to facilitate Ferretti's expansion in emerging markets such as Asia, with a particular focus on Greater China, which will be an important growth engine for Ferretti's future development. In addition, the Group will provide a range of other resources including capital support to Ferretti to stimulate its rapid business development in both the traditional European and American markets as well as other emerging markets.

After the acquisition, the Group will continue to uphold its operational principle of unifying strategies and resources while operating independently and will retain Ferretti’s key management team, headquarters and production bases in Italy.

Mr Tan Xuguang, Chairman of SHIGWeichai Group, said: 'Developing the yacht business is one of the Groups strategic goals for the next five years. Ferretti, which possesses iconic international brands, state-of-the-art manufacturing technologies, products of the highest quality and an extensive sales network, is an ideal partner.

'Through the acquisition, the Group will cooperate closely with this world-renowned yacht maker, providing Ferretti with new channels to market and capital support as well as other resources with which it can expand more effectively into emerging markets, a key area of potential growth for Ferretti. Synergies between the Group and Ferretti can be unleashed through the sharing of resources and industrial integration.

'Ferretti’s overall competitive advantages in production cost, sales channels, after-sales service and financial strength will be improved, creating a win-win situation that will allow Ferretti to consolidate its leading position in the luxury yacht market.'

Mr Norberto Ferretti, Chairman and Founder of Ferretti Group declared 'We are very proud of this agreement with a prestigious partner such as SHIGWeichai Group. We are strongly convinced that this partnership will lead to very satisfactory results and will provide Ferretti Group with a strong capital base which will allow the development of long-term growth plans.

'Moreover China is one of the most rapidly developing countries for the yachting sector and has great potential for the coming 5 to 10 years.'

SHIGWeichai Group is one of the most competitive equipment manufacturing groups in China offering a broad range of high quality commercial vehicles, construction machinery and other heavy-duty industrial products.

The Group operates four main divisions, namely commercial vehicles, construction machinery, power generation systems and auto parts. In addition to its solid market foundation in China, the Group has also been active in the overseas markets. In 2009, the Group acquired Moteurs Baudouin SA (Baudouin) in France through its subsidiary Weichai Power Co., Ltd. (Weichai Power), which has helped the Group expand into the international high-end yacht business.

After the acquisition, Weichai Power invested an accumulated 30 million euros and implemented multiple measures to improve Baudouins businesses and operations. Several objectives were achieved including the expansion of production scale, the enhancement of its R&D capabilities, as well as the recruitment of local employees. The sales volume of Baudouins engines increased from 74 units in 2009 to 352 units in 2011. The staff numbers rose from 120 in 2009 to 202 in 2011, playing a vital part in establishing Baudouins leading position in the marine power market.

More at www.ferretti-yachts.com
Zhik AkzoNobelb 660x82RS Sailing 660x82Barz Optics - Floaters

Related Articles

New addition to North Sail for Volvo Ocean 65 racing machines
Their sails have powered eight out of nine Volvo Ocean Race winners since 1989-90, with Steinlager 2. Instead of assembling cloth panels into a particular sail shape, the Volvo Ocean Race sails are composites. This means that 3Di material 'tapes' are laid in a specific arrangement, offering stable structure to the sail where it is needed most.
Posted on 24 Apr
Crewsaver appointed as Official Safety Provider to 35th America’s Cup
Crewsaver has announced today that it has been selected to be the Official Safety Provider to the 35th America’s Cup Crewsaver has announced today, 21st April 2017, that it has been selected to be the Official Safety Provider to the 35th America’s Cup, which will take place in Bermuda from 26th May to 27th June 2017.
Posted on 22 Apr
St. Barth’s Super Yacht Regatta - Final Day
Today was the final day of racing of the St. Barth’s Bucket, the annual Super Yacht regatta down here in the Caribbean. Today was the final day of racing of the St. Barth’s Bucket, the annual Super Yacht regatta down here in the Caribbean. I sailed as tactician onboard Rosehearty, once again, with my friend Joey Kaempfer and a fantastic team. We trained a bit on Wednesday and Thursday last week and had one race a day beginning on Friday.
Posted on 20 Mar
Marine Resources expands Boatbuilding Team with two key appointments
Marine Resources have recently expanded their in-house boatbuilding team, with the addition of two new key members. Leading leisure marine industry and luxury yacht recruitment specialists Marine Resources have recently expanded their in-house boatbuilding team, with the addition of two new key members.
Posted on 16 Mar
Southern Spars takes to the air with new composite engineering project
One of the challenges for companies who have had their roots in the marine industry is diversification beyond that field One of the challenges for companies who have had their roots in the marine industry is diversification beyond that field. Moving into the composites engineering for non-marine projects is becoming a more common occurrence as clients realise the opportunities from utilising the expertise of composite boat and spar builders.
Posted on 8 Mar
New Xperformance - Optimising the cruiser/racer range from X-Yachts
X-Yachts have built a wide range of 'Cruiser/Racers' as well as dedicated racing yachts which have won many Intl titles Since the company was founded back in 1979, X-Yachts have built a wide range of 'Cruiser/Racers' as well as dedicated racing yachts which have won many famous International titles, and of course One Design Class yachts such as X-79 and X-99
Posted on 14 Feb
World Sailing unites Kiteboarding governing bodies
World Sailing has today signed a landmark agreement with the IKA and the GKA to unite the kiteboarding community World Sailing has today signed a landmark agreement with the International Kiteboarding Association (IKA) and the Global Kitesports Association (GKA) to unite the kiteboarding community and provide clarity of kiteboarding's governance structure.
Posted on 13 Feb
On board interview with Lisa Blair - solo Antartica circumnavigation
So far, Lisa is tracking very well in her attempt to become the first woman to sail solo around Antartica. So far, Lisa is tracking very well in her attempt to become the first woman to sail solo around Antartica. After the setbacks of a delayed departure due to gremlins in the electronics, we are delighted to have these answers from her on board. She is well and enjoying her time. Climate Action Now, her Hick 50, left Albany in Western Australia on January 22, 2017.
Posted on 8 Feb
The price of legacy
Malcolm Page OAM, two-time Olympic Gold Medallist, became the Chief of Olympic Sailing for the USA on January 1 Malcolm Page OAM, two-time Olympic Gold Medallist (470) with Nathan Wilmot in 2008 and Mat Belcher in 2012, became the Chief of Olympic Sailing for the USA on January 1 this year. In and of itself it is hardly the freshest news, and well and truly yesterday’s fish wrapper. It was also a wise choice on behalf of Team USA, for he has succeeded in both the physical and commercial arms of our sport.
Posted on 5 Feb
Superyacht Challenge Antigua – Tactical battle on the south side
The second race of the regatta was about 12 miles, along the stunning South Coast of Antigua. The second race of the regatta was about 12 miles, along the stunning South Coast of Antigua.
Posted on 5 Feb