Italian private equity firm Investindustrial has pipped India's Mahindra & Mahindra (M&M) to the post in a close race for British sports car maker Aston Martin, a brand associated with James Bond.

Investindustrial, which used to own Ducati, has acquired a 37.5 per cent stake in Aston Martin thanks to a £150 million investment.

Production of Aston Martin cars would continue at the company's headquarters at Gaydon, Warwickshire, which has a workforce of 1,600 people.

According to Investindustrial, which sold Ducati to Audi in April this year, its mission was to actively contribute to the development of the companies in which it invested, by creating growth opportunities and offering global solutions through an active ownership and entrepreneurial vision.

Its investment in Aston Martin, which made it a shareholder alongside the company's owner, The Investment Dar, coincided with the Gaydon-based carmaker's preparations to celebrate its centenary next year.

Though Mahindra & Mahindra had been in talks to inject cash into the iconic sports car brand from Aston's owner, Kuwaiti investment house Investment Dar, the structure of the company ensured that Investment Dar (TID), the Kuwaiti company that owned half of Aston Martin, would continue to hold on to 24 per cent.

According to industry experts, the Italian company's move would given Aston Martin a much-needed cash infusion to invest in automotive resources to compete with global biggies like Volkswagen's Bentley and Fiat's Ferrari.

The super-luxury carmaker has seen its market dented as these rivals, being part of larger conglomerates, were better able to spread their research and other costs.

''Aston Martin welcomes Investindustrial as a major shareholder and confirms that it will now proceed with its extensive and exciting plans for sustainable long-term growth,'' the company said in a press release.

''I am delighted that Investindustrial has decided to become a major investor in Aston Martin. With the support of The Investment Dar, we have made substantial progress over the past five years in laying the foundations for success as one of the world's leading luxury sports car manufacturers.

Investindustrial's new investment reflects and sustains the unique position of Aston Martin within the industry. With this partnership and the continued commitment of The Investment Dar, we look forward to working with our shareholders as we realise our vision and exciting future plans,'' chairman David Richards said.
 
''We are delighted to form part of this iconic global, but quintessentially British brand. We are looking forward to working with the management and Investment Dar to achieve a similar transformation and rejuvenation that we achieved with Ducati, by expanding the model range and strengthening the dealership network, throughout the world,'' Andrea C Bonomi, senior principal at Investindustrial, said.
 
Adnan Al-Musallam chairman and managing director of The Investment Dar said: ''We welcome Investindustrial as new partners in our collaboration with Aston Martin. With our continued commitment and the support of Investindustrial, Aston Martin is in a strong position to pursue its plans for development.''
 
Investindustrial is investing £150m in Aston Martin in the form of a capital increase for a 37.5 per cent stake in the company.
 
Aston Martin intends to invest more than half a billion pounds in its new product and technology programme over the next five years. With the support of The Investment Dar and Investindustrial, the company is well positioned to realise its ambitious growth strategy, the release said.
 
Aston Martin production will remain at the luxury British marque's global headquarters at Gaydon in Warwickshire, a purpose-built facility where a skilled workforce of 1,600 employees assemble the current range of sports cars.