Mahindra & Mahindra & ICICI Venture Consortium inks agreement to acquire Metalcastello S.p.A.

A consortium of Mahindra & Mahindra Ltd (M&M) and ICICI Venture Funds Managements Ltd, has signed a definitive agreement agreeing to acquire 100% stake in Metalcastello S.p.A, a leading Italian independent gear manufacturer. However, the company has not disclosed the cost of the acquisition.

Mahindra Forgings (MFL) has already created one of the leading forging Companies in the world. Together with Metalcastello S.p.A, the Company intends to 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 Mahindra is already harvesting.

Metalcastello has revenues of around $100 million. The Company was originally 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 & shafts for use in vehicle transmissions and drivelines. Its Customer portfolio includes most of the global OEMs in the tractor, off highway & construction equipment space.