India's largest utility vehicle maker, Mahindra & Mahindra has signed a definitive agreement, through a consortium with India’s leading PE player, ICICI Venture Funds, to acquire 100 per cent stake in Metalcastello S.p.A.

Metalcastello, a leading Italian independent gear manufacturer, based near Bologna, has revenues of around $100 million. The company was originally founded in 1952 and is among the top gear manufacturers in Europe. The company’s product portfolio includes complex gears and shafts for use in vehicle transmissions and drivelines.

Currently, financial investors hold 84.7% stake in the Italian company, of which 66.5% is held by private equity fund Development Capital, advised by Italian firm Alto Partners, while the top management holds 15.3%.

The acquisition is part of M&M’s larger strategy to consolidate its gear business in the European market.