Mahindra acquires Italian engineering firm

M&M today signed an agreement with Engines Engineering S.p.A, to buy the controlling stake in Engines Engineering S.r.l, the new legal entity of the Italian company. Engines Engineering S.r.l will hold the transferred business of Engines engineering S.p.A, which is subject to necessary approvals.

Hemant Luthra, president, M&M Systech, said: "M&M, through Systech, has been looking at acquisition of a reputed design house. Demand for offshoring of engineering services has been growing rapidly. Acquiring a design house like Engines Engineering provides us the perfect vehicle to penetrate into markets of Europe, China and Russia. It also gives us the impetus to scale up the business, have access to market and technology along with management skills."

 

Although M&M didn't provide details of the cost of acquisition but said that the takeover will be funded by a mix of cash and stock.

Engines Engineering's revenues stood at $12 million. It is in the business of two wheels design and developing of motorcycle prototype. The company was originally founded in 1979 by Alberto Strazzari and offers complete and thorough services to its clients. Currently, Alberto Strazzari hold 85 per cent and three other investors hold the balance. It is based in Castenaso near Bologna which is also one of the leading automotive engineering and industrial manufacturing hubs in Italy.

Engines Engineering carries out a full range of activities (starting from a basic idea on a blank sheet, culminating to a finished product on the road) to deliver a product in line with the latest styling trends and incorporates the most advanced technology in terms of mechanics. It provides