Mahindra To Acquire Pininfarina

By Mike Brezonick04 January 2016

Tech Mahindra Ltd., a provider of IT, network and engineering solutions and Mahindra and Mahindra (M&M), part of India’s global $16.9 billion Mahindra Group, entered into an agreement in late 2015 to purchase a controlling stake in Italian automobile and industrial design firm Pininfarina S.p.A.

As part of the agreement, Tech Mahindra and M&M will purchase 76.06 % of Pininfarina shares from current controlling shareholder PincarS.r.l. at a price of 1.1 euros per share. The investment by Tech Mahindra and M&M will be done via a joint venture company with 60% owned by Tech Mahindra and 40% by M&M.

The Italian firm will reportedly remain an independent company with Paolo Pininfarina staying on as chairman.

Tech Mahindra said it will benefit from the designer's presence in the automobile markets of Italy and Germany as well as in the U.S. and China. It will also benefit from relationships the designer has nurtured over its 85-year history, including with automobile manufacturers Ferrari, Alfa Romeo, Maserati and Peugeot. Pininfarina has also designed high-speed trains, buses, yachts, farm tractors and more.

The move is expected to augment Tech Mahindra's transportation, aerospace and industrial design offerings. Following the acquisition, Tech Mahindra said its Integrated Engineering Solutions (IES) business will also be able to better compete with traditional western players when it comes to design and prototyping.

"Pininfarina will add enormous value to Tech Mahindra's portfolio of engineering services,” said Anand Mahindra, chairman, Mahindra Group. “But just as important is the fact that the legendary high-end design credentials of Pininfarina will significantly enhance the design capabilities of the entire Mahindra Group. Given the increasing design sensibilities of today’s consumers, product design will greatly influence customer choice and experience, and hence our success.”

For Pininfarina, the acquisition is expected to allow it to leverage Tech Mahindra's presence in 90 countries and access to about 780 customers. The IES business is also expected to complement Pininfarina's offerings.

"In a globalized world, entrepreneurship and capital do not need a passport,” said Paolo Pininfarina, chairman, Pininfarina S.p.A. “We are joining hands with a $3.9 billion technology and global partner, and part of the $16.9 billion global Mahindra Group, which will not only strengthen our Italian identity but will open more doors. Tech Mahindra's global presence and global delivery model will allow us to compete for a larger pie of the business."

The closing is expected in the first half of 2016.

MAGAZINES
NEWSLETTER
Delivered directly to your inbox, Diesel News Network newsletter features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
CONNECT WITH THE TEAM
Mike Brezonick VP, Power Division Tel: +1 262 754 4112 E-mail: mike.brezonick@khl.com
Alister Williams VP Sales Tel: +1 843 637 4127 E-mail: alister.williams@khl.com
CONNECT WITH SOCIAL MEDIA
Latest News
Scania introduces new Touring coaches
The new Scania Touring models feature increased maximum weight capacity and new driver aids
Wireless control for Onan gen-sets
Targets diesel and gas generator sets used in recreational vehicle applications
Epiroc to acquire battery conversion specialist FVT Research
Canadian company has expertise in converting diesel-powered mining machines to battery-electric vehicles.