India’s Mahindra Aquires Pininfarina Design House in £122 Million Deal
Indian manufacturer Mahindra has bought car design studio and coachbuilder Pininfarina in a deal said to be worth a reported £122 million (about €168 million).
The deal involves Mahindra purchasing a controlling stake of 76.06% in the Italian brand. An open offer for the remaining shares is expected to be issued at a later date.
However, Pininfarina will continue to remain an independent company, listed on the Milan Stock Exchange, with Paolo Pininfarina staying on as chairman.
Mahindra says it will also invest an additional €20 million into Pininfarina and deliver a guarantee to the car designer’s creditors of €114.5 million.
The newly-announced deal is expected to give Mahindra a greater international reach by tapping into relationships the Turin-based design studio has established over the years with carmakers such as Ferrari, Alfa Romeo, Maserati and Peugeot.
Mahindra is said to have first approached Pininfarina at the start of this year, though its links to Pininfarina go back to 2013 when it employed Hubert Tassin, an ex-Pininfarina designer.
“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,” said Mahindra boss, Anand Mahindra.
Started 85-years ago, Pininfarina has become the symbol for Italian car design. It has designed almost 1,000 cars across brands over the years.
The company’s enduring relationship with Ferrari began when founder Battista ‘Pinin’ Farina and Enzo Ferrari met in 1951. Farina designed the first Ferrari, the 212, followed by the 250 GT. Farina’s designs even caught the attention of Hollywood, inspiring the film ‘Sabrina’ starring Audrey Hepburn, William Holden and Humphrey Bogart, along with the Spider that Farina designed.