The Ferrari brand is set to acquire the manufacturing and production company of a global manufacturer of cooling and cooling systems, after the Italian manufacturer said it would invest €20 billion in the company.
The purchase, to be completed in 2017, is expected to boost Ferrari’s share value by more than 25% from €15.8 billion to €22.6 billion, according to a report in the Financial Times.
“It is a landmark deal, as it is a brand that has had a long and successful history in the automobile industry,” said Luca di Montezemolo, president of Ferrari Group.
“It will provide a strong foundation for the future of the brand.”
The company is expected at the same time to introduce a new car, the Nissans, in 2021, but Ferrari will be focusing on its brand as well as its products.
The move comes as Ferrari continues to strengthen its grip on the market by making inroads in the luxury car market, and is likely to benefit the brand by reducing the costs of its products, according the report.
The acquisition is part of Ferrari’s drive to become a global brand.
It is also part of the company’s strategy to boost its value and is expected, as a result, to create a greater diversification of its brands.
The Nissians deal will give the Italian brand more flexibility in terms of how it can expand its product line and also increase the production capacity.
According to the Financial Post, the new acquisition will give Ferrari greater flexibility in its supply chain.
“The Nissan agreement is part [of] the company achieving the goals set out in the Strategic Plan of 2020, which include expanding its manufacturing capacity,” the Financial Press quoted Ferrari Chief Executive Luca Di Montezumolo as saying.
“This is a big step towards achieving the goal of doubling its production capacity by 2021.”
It will be Ferrari’s third major acquisition of a manufacturing company.
In 2016, the company bought the manufacturing firm of global technology firm Siemens AG for €2.5 billion.