TVS acquires Britain’s most iconic sporting motorcycle brand ‘Norton’ For 153 Crore
TVS Motor Company on Friday announced the acquisition of the United Kingdom’s most iconic sporting motorcycle ‘Norton’ in an all-cash deal, for £16 million, by acquiring certain assets of Norton Motorcycles (UK) (in administration), through one of TVS Motor’s overseas arms. This would be among the most interesting acquisitions of a storied motorcycle maker, and reflects TVS’ and India’s rapidly rising prominence in the global two-wheeler market, said the company.
“The transaction is an all cash-transaction for a consideration of GBP16 million and was concluded by Project 303 Bidco Ltd. This is a newly incorporated company (with no business) that was acquired by TVS Motor’s subsidiary (TVS Motor (Singapore) Pte. Ltd) for GBP1, immediately prior to signatures and closing of the aforesaid asset purchase transaction,” it added.
Founded by James Lansdowne Norton in Birmingham (in 1898), Norton Motorcycles is among the most popular British motorcycle brands of all time.
Since the 20th century, Norton has been renowned for its classic models and eclectic range of luxury motorcycles, ranging from the authentic retro classic reboots of the famous Commando to their contemporary 200 bhp, 1200cc V4 super-bikes.
TVS has also said that it is confident of the strong synergy between both the brands. This move will provide Norton Motorcycles its best opportunity in years for a strong resurgence and the British company can leverage TVS Motor Company’s global reach and supply chain capabilities to expand to new markets.
Norton has had a troubled history. Recently, insufficient cash flow is said to be one of the reasons why Norton Motorcycles had trouble fulfilling their order book. The company’s previous owner, Stuart Garner, is also reportedly under investigation for a number of counts of fraud. While Norton’s limited-edition V4 SS sold out rapidly despite the huge GBP 44,000 (Rs 40.88 lakh) asking price, the funding required to source parts and build these high-end motorcycles at the company’s Donington Hall factory wasn’t there.
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