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M&M Arm Acquired Italian Two-Wheeler Design Company |
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One of the largest automobile company in India, Mahindra & Mahindra (M&M), has made an announcement on Thursday and said that its component division, Systech has recently acquired a controlling stake in the Italian design company, Engines Engineering (EE). The company has not said anything about the amount of investment involved in the acquisition and informed that the Bologna-based EE mainly develops motorcycle prototypes and two-wheeler designs. The officials of M&M informed that the EE is having annual revenues of about $12 million and this acquisition is supporting the notion that M&M is getting more and more interested in the growing two-wheeler market, at the moment.
Talking about the recently made acquisition, the President of Systech, Mr. Hemant Luthra said, "Demand for offshoring of engineering services has been growing rapidly...acquiring this design house provides us the perfect vehicle to penetrate markets like Europe, China and Russia". He added, "Now that we have a design house in Italy, we will look for one in Germany to further penetrate the European markets". He informed that the M&M has been looking for acquiring reputed design houses for quite a long time now and the latest acquisition is actually a continuation of that search only.
The Chairman of Engines Engineering, Mr. Alberto Strazzari was also making his own comments on the acquisition and said, "Engines Engineering has been operative for the last three decades and a partnership with M&M will fuel growth". He added, "I have great comfort level with M&M, having worked together with them for the last two years. We can combine our technological strengths, customer base and lower cost engineering excellence to fuel growth in Europe and India". Mr. Luthra informed that the company is going to pay about 70% of the acquisition cost in cash and the selling shareholder Strazzari would continue holding a 30% stake in EE.
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| M&M Arm Acquired Italian Two-Wheeler Design Company |
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