LiuGong Machinery Corp. has finalized its agreement to acquire HSW (Huta Stalowa Wola) and its distribution subsidiary, Dressta Co, Ltd., company executives announced. The agreement was signed by both companies’ executives in Warsaw with celebration ceremonies following at the Baranów Sandomierski Castle in Baranów Sandomierski, Poland.
David Beatenbough, currently Vice President of Research and Development for LiuGong, has been named Chairman of the Board of the new entity, LiuGong Machinery (Poland) sp z o.o. The transaction is LiuGong’s first outright acquisition outside its domestic market.
HSW is a producer of bulldozers and other crawler machines. It is one of only seven manufacturers worldwide producing a complete line of bulldozers, from 74 Hp to 520 Hp. The Polish government was the primary owner of HSW. It agreed in principal to sell to LiuGong earlier this year with the signing of a preliminary enterprise acquisition agreement in Beijing, China.
LiuGong’s acquisition of HSW represents a smart strategic step for the company, which has a publically stated goal of becoming a top 10 construction equipment manufacturer by 2015.
In the transaction, LiuGong obtains core technologies that will help it advance some of its product designs; supplements the company’s existing product lines; provides a manufacturing and logistic footprint in Europe; and expands penetration into markets and products segments.