Indian manufacturer Mahindra has just completed its acquisition of famed Italian design house Pininfarina with a buyout worth about $28 million.
The Mahindra Group itself includes a selection of smaller firms. Those who have acquired a controlling stake in Pininfarina are Tech Mahindra Limited, a provider of IT and engineering solutions and automaker Mahindra & Mahindra.
The newly signed deal, which has been in the works for months, will see Mahindra purchase a 76.06 per cent share in Pininfarina, with those shares coming from existing shareholder Pincar. In the near future, Mahindra is hoping to make an offer for the remaining 24 per cent of Pininfarina.
Beyond the initial price paid for Pininfarina, Mahindra is guaranteeing over $125 million to the creditors of the design house and is planning over $20 million in investments into the company.
Discussing the transaction, chairman of the Mahindra Group, Anard Mahindra, said: “Pininfarina will add enormous value to Tech Mahindra’s portfolio of engineering services. 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.”
Founded 85 years ago, Pininfarina has penned almost 1,000 production cars and worked for the likes of Ferrari, Fiat, Lancia, Maserati and Alfa Romeo.