The Ferretti Group was sold to the state-owned Shandong Heavy Industry Group - Weichai Group. 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.
Mr. Tan Xuguang, Chairman of SHIG—Weichai Group, said: "Developing the yacht business is one of the Group’s 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 SHIG—Weichai 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”
The Ferretti Group, which includes the Ferretti, Pershing, Itama, Riva, Mochi Craft, CRN, Custom Line and Betram Yachts brands, will keep the existing management, as well as the current yards in Italy and the US.