Mahindra buys Pininfarina for $28 million
Snapshot: Mahindra has confirmed that it has agreed to purchase Pininfarina and will pay around $28 million for the Italian design house.
With over 85 years of history in iconic designing of the various brand’s products including Ferrari, Alfa Romeo, Maserati, etc., the legendary brand “Pininfarina” will allow powerful access to Mahindra. Confirming on this, Mahindra will pay around $28 million for 76-percent of the Italian design house. As part of the agreement, Tech Mahindra and M&M shall purchase 76.06 % of Pininfarina shares from the current controlling shareholder Pincar S.r.l. at a price of Euro 1.1 per share. This investment by Tech Mahindra and M&M shall be done via a joint venture company.
On this occasion, Mr Anand Mahindra, Chairman of the Mahindra Group, 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".
The company's enduring relationship with Ferrari began when 'Pinin' Farina and Enzo Ferrari met in 1951, designing the first Ferrari, the 212, followed by the tremendously popular 250 GT. Pininfarina's philosophy of Purity, Innovation and Elegance will find a perfect fit with Tech Mahindra's world of connectedness – where design & styling will, hand in hand with engineering services, go after a larger market. This is an opportunity for Tech Mahindra to influence product conceptualization and design & styling through Europe's best-in-class design house. Pininfarina will continue to remain an independent company, listed on the Milan Stock Exchange.
"Our clients want more from us, consistently. Adding Pininfarina's legendary design skills to our Integrated Engineering Solutions enables a strong entry into Automotive styling, design & development and reinforces our body engineering capabilities. Further, Pininfarina's 25-year design expertise in industries beyond Automotive will give us that winning edge in areas such as Aerospace, Consumer Electronics, Architecture & Interiors and Transportation where we already have a strong footprint," according to CP Gurnani, CEO & Managing Director, Tech Mahindra.
Paolo Pininfarina, Chairman Pininfarina S.p.A. added, "In a globalized world, entrepreneurship and capital do not need a passport. We are joining hands with a $ 3.9 Billion Technology & 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."
This combined venture will enable a strong entry into automotive styling, exclusive vehicles design & development and reinforced body engineering capability.