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Mahindra & Mahindra to buy Italian design house

MUMBAI: Mahindra & Mahindra (M&M) signed an agreement with Engines Engineering s.p.a. of Italy, agreeing to acquire 100 per cent stake in Engines Engineering s.r.l, the new legal entity which will be formed by transferring the business of Engines Engineering s.p.a. The size of the transaction was not disclosed and it is subject to receipt of necessary approvals. In a statement issued by the company, Hemant Luthra, President, Systech, the auto components division of M&M said, “Continuing its vision to create ‘an art to part’ entity, M&M through Systech has been looking at acquisition of a reputed design house.

Systech’s engineering services business has grown by a factor of ten in the last four years and continues to grow at the same pace as it provides its unique domain knowledge in the field of automotive and aerospace design.”

Further he said, “The 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”. Engines Engineering is based in Castenaso near Bologna. Its revenues are about $12 million and it is in the business of two-wheeler design and developing of motorcycle prototypes.

It was founded in 1979 by Alberto Strazzari who holds 85 per cent while three other investors hold the balance equity stake. Engines Engineering carries out a full range of activities and provides a ‘one stop solution’ including conception, design, styling, on-line assembly, industrialisation and marketing.

It has some of the most prestigious names associated with it including Benelli, Beta, Ducati, Gilera, Honda, LEM, Malaguti and Yamaha.

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