Ferretti Group May Sell to Chinese Manufacturing Company

The Ferretti Group, parent company of CRN, Ferretti Custom Line, and more, may soon be owned by Shandong Heavy Industry Group Co., a manufacturer of construction and agricultural machinery. This, according to two financial-news sources.

Bloomberg and the Financial Times report that a few people knowledgeable about the deal have spoken on anonymity. (Both media outlets say that the Ferretti Group declined to comment when it was contacted. MegayachtNews.com attempted to obtain a statement as well, but as of this writing, there is no official word.) According to the individuals Bloomberg and the Financial Times spoke with, the Ferretti Group’s shareholders are yielding control of the company to its lenders. This, they say, reduces the Ferretti Group’s debt from €685 million to €116 million (about $889.6 million to $150.6 million, respectively). The lenders are Royal Bank of Scotland Group, Strategic Value Partners, and Oaktree Capital Management. The lenders will then sell the Ferretti Group to Shandong Heavy Industry, the individuals state.

Furthermore, the news agencies report the individuals as saying, the Ferretti Group is set to receive €180 million (about $234.5 million) in additional funding. The lenders will be given the chance to buy into €100 million of that equity, while the rest of it will be a revolving line of credit.

Shandong Heavy Industry apparently does not want the style of the Ferretti Group yachts and megayachts to change. Rather, according to the Financial Times, the company’s interest includes making an initial public offering (IPO) available in Hong Kong.

The Italian courts must approve the deal, which is expected to take a few months.

Updates to come as they are available.

Comments

  1. Next, Europe is a province of China when the money power and hunger of Chinese companies about European luxury manufactories / vineyards raises on. The question only is then : what about the quality?

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