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PRINT THIS PAGE Carlyle to buy 85 per cent stake in Xugong Group Construction Machinery for $375m28/10/2005. Source: AltAssets. 
 The Carlyle Group has agreed to acquire an 85 per cent shareholding in Xugong Group Construction Machinery Co., a Chinese construction machinery manufacturer and distributor, for $375m in cash. The US private equity giant has reportedly worked on this deal for more than two years.
XCMC is currently owned by Xuzhou Construction Machinery Group, which is wholly owned by the city government of Xuzhou. XCMG will retain a 15 per cent holding in the company.
XCMC develops, manufactures and markets products including hydraulic cranes, road compaction and surfacing machinery, earth moving and loading machinery, hydraulic components and basic construction machinery components. XCMC's total sales in the year to 31 December 2004 were RMB6.59bn ($815m), according to a statement.
The auction of XCMC attracted interest from both, industry and financial buyers, reportedly including AIG and JPMorgan Partners.
X.D. Yang, managing director and co-head of the Carlyle Asia Buyout Group, said, 'We are excited about this important investment in XCMC, one of our largest in China. The XCMC management team has built a solid business, and we look forward to working with them to create a leading international construction equipment company with deep roots in China's fast developing industrial sector and creating an international brand.'
The transaction will trigger a mandatory general offer to other shareholders of Xuzhou Science & Technology Co., a 43 per-cent-owned subsidiary of XCMC that is listed on the Shenzhen Stock Exchange.
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