MUMBAI: Homegrown auto major Mahindra & Mahindra on Thursday said it has acquired $12 million Italian two wheeler designing firm Engines Engineering for an undisclosed amount.
"M&M has signed an agreement with Engines Engineering SpA, agreeing to acquire 100 per cent stake in Engines Engineering Srl, the new legal entity which will be formed by transferring the business of Engines Engineering SpA," the company said in a filing to the Bombay Stock Exchange.
"M&M through Systech has been looking at acquisition of a reputed design house," Mahindra Systech President Hemant Luthra said, adding it would enable M&M to penetrate into the markets of Europe, China and Russia.
The acquisition gives impetus to scale up the company's business, have access to market and technology along with management skills, the filing added.
It would help the company combine the Italian flair for design with Mahindra's domain expertise, M&M said.
Commenting on the acquisition, Mahindra & Mahindra Group Vice-Chairman and Managing Director Anand Mahindra said, "Mahindra Systech has the mandate to build globally competitive businesses in selected verticals and this acquisition greatly enhances our capability to do so."
Engines Engineering has revenues of about 12 million dollars. The company also develops motorcycle prototypes and has developed products for a wide range of brands from Spanish manufactures to those located in the Far East.
Shares of M&M were trading at Rs561.15, down 1.21 per cent on the BSE.
