Beijing-based Chinese private equity firm Hony Capital says it has acquired a 20% stake in Chinese farm machinery maker Chery Heavy Industry Co., Ltd. for RMB696 million (US$113.3 million), according to a company announcement.
Hony Capital teamed up with Chinese construction machinery maker Zoomlion Heavy Industry Science and Technology Co., Ltd. The two parties paid a total of RMB2.78 billion (US$452 million) for a combined 80% stake of Chery Heavy Industry.
Previously, Hony Capital joined forces with Zoomlion in the buyout of Italian concrete machinery maker CIFA S.p.A. in 2008.
Chery Heavy is a subsidiary of Chinese automaker Chery Group, and makes agriculture and contruction machinery.
Hony Capital has been making big deals at a rapid pace lately. It acquired British food brand Pizza Express for £900 million (US$1.2 billion) in July, in the biggest acquisition of a European food company in the past five years.
In June, Hony Capital acquired 12.43% of Chinese hotel operator Shanghai Jin Jiang Development Co. Ltd. for RMB1.508 billion (US$245 million). Hony is also participating in the US$2.8 billion privatization deal of Shanghai-based online game developer Giant Interactive Group Inc. with Baring Private Equity Asia and the company’s chairman Shi Yuzhu.
In May, Hony Capital bought a piece of land in Shenzen’s Qianhai economic zone with plans to build its headquarter there.