Italian group Ferretti, the world's largest luxury yacht manufacturer, boasts one of the world’s most advanced naval R&D centres (Ferretti Group’s Advanced Yacht Technology) and a team of architects and designers (Centro Stile Ferrettigroup). Ferretti has 8 yacht brands (Ferretti Yachts, Pershing, Itama, Bertram, Riva, Mochi Craft, CRN and Ferretti Custom Line) and owns a total of 8 shipyards in Italy as well as in Miami, USA. It employs nearly 2000 people.

Developing the yacht business is one of SHIG-Weichai Group’s strategic goals for the next five years, according to Mr Tan Xuguang, Chairman of SHIG-Weichai Group.

"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.”

The SHIG-Weichai equipment manufacturing group offers a range of commercial vehicles, construction machinery and other heavy-duty industrial products. The Group employs over 40 000 people worldwide and recorded operating income of RMB91.1 billion in 2010. SHIG-Weichai aims to facilitate Ferretti‘s expansion in emerging markets such as Asia, with a particular focus on Greater China. In addition, the Group will provide a range of other resources to Ferretti to stimulate its business development in both the traditional European and American markets as well as other emerging markets.

Through a total investment of €374 million, including equity investment of €178 million and provision of debt financing of €196 million, 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 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’s key management team, headquarters and yacht production bases in Italy will be retained.