Mumbai, Apr 2 (UNI) A consortium of Mahindra and Mahindra (M&M) and ICICI Venture Funds Management, India's leading PE player with Asset Under Management of over USD two billion, today signed a definitive agreement to acquire 100 per cent stake in Metalcastello SpA, a leading Italian independent gear manufacturer.
The transaction is subject to receipt of necessary approvals, a release issued by the consortium said.
Systech President Hemant Luthra said, ''Mahindra Forgings (MFL) has already created one of the leading forging companies in the world. Together with ICICI Venture, we expect Metalcastello SpA, an outstanding company with a 50 year history of serving its customers profitably, to help replicate in the gear vertical what MFL has achieved in the forgings space. The customer base of both MFL and Metalcastello is complimentary and will enhance the synergies that we are already harvesting. Consistent with Mahindra Systech's ''art to part'' expertise, Metalcastello SpA perfectly compliments this capability in the auto component space and will add immense value to its stakeholders.'' Mahindra Group holds majority stake in Rajkot based gear manufacturing company - Mahindra SAR Transmission and this acquisition augments Systech's ability to serve its customers from multiple locations such as Italy, UK, Germany and India for their auto component needs. It also strengthenes Mahindra Group's position as a leading auto component player in the global market.
Metalcastello, based near Bologna, has revenues of around USD 100 million. The Company was founded in 1952 and is among the top gear manufacturers in Europe, focused primarily on the off-highway segment. The Company's product portfolio includes complex gears and shafts for use in vehicle transmissions and drive lines. Its customer portfolio includes most of the global OEMs in the tractor, off highway and construction equipment space.
Currently, financial investors hold 84.7 per cent stake of which 66.5 per cent is held by private equity fund Development Capital, advised by Italian firm Alto Partners and top management holds 15.3 per cent in Metalcastello.
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