Image: DLB Yacht Charter
Debt-laden Italian luxury yacht maker Ferretti was just bought by machinery maker Shandong Heavy Industry Group. The Chinese company just penned a deal this week to acquire a 75% stake in the luxury yacht company.
Adding to the list of European brands acquired by Chinese companies, Shandong Heavy Industry has taken advantage of financial troubles in Europe and now owns 75% of Ferrett, which was founded in 1968. The deal also reflects the increasing demand for luxury goods in China.
Norberto Ferretti, Ferretti Group chairman, said the acquisition will help his company meet a “growing China demand for luxury goods for the coming 5 to 10 years.”
While the company’s headquarters and production base will still be in Italy, Shandong Heavy does plan to build yachts in China too. Italy has long been considered a leader in the luxury yachting industry, contributing significantly to its economy.
In 2007, Ferretti accumulated €1.2 billion in debt and subsequently defaulted on its debt in January 2009. The company owns Pershing, Riva and Ferretti Yachts brands and ranked first in the 2011 Global Order Book, an annual report on the yachting industry done by ShowBoat International.
Oliver Burlot, managing director of the Hong Kong-based international yacht brokerage firm Simpson Marine, said, “The opening of new marinas, yachting facilities and yachting events in China, especially on the southern coast, is actually fueling demand for yachts.”
Source: New York Times