TVS Motor Company has today announced that it has completely acquired Norton, the legendary British motorcycle manufacturer, in an all-cash deal of GBP 16 Million
TVS Motor Company, the popular South India-based motorcycle manufacturer that is famous for models like the Apache, has just announced the successful acquisition of Norton, arguably the most iconic motorcycle manufacturer from Great Britain. The Indian bike maker has said that it has acquired the British company in an all-cash deal of GBP16 million (Rs. 153 Crores).
TVS has acquired assets of Norton Motorcycle (UK) Limited through one of its overseas subsidiaries. The latest development can be viewed as one of the biggest acquisitions of a celebrated motorcycle manufacturer by an Indian manufacturer of mainstream motorcycles. Norton was founded by James Lansdowne Norton in Birmingham in 1898. Stuart Gardner, the current CEO of Norton, is currently being investigated for pension fraud. As per the UK regulators, Stuard Gardner, the trustee of three pension schemes from Norton, is accused of conning investors by promising them tax-free income but the same didn’t materialise.
Well, at this stage, there’s no clarity on the future plans of the two motorcycle brands. However, it will be pretty interesting to note how TVS works with Norton. The relationship that the South India-based manufacturer has with BMW Motorrad can’t serve as an example as former doesn’t have control over the latter due to the partnership being a non-equity one.
With Norton, however, things might be different as TVS will have easy access to Norton’s new 650cc platform. Through this, TVS might help rival the Royal Enfield 650cc twins. TVS is confident that thanks to the strong synergy between the two brands, Norton Motorcycle will benefit from leveraging TVS Motor Company’s global reach and supply chain capabilities to expand to new markets.
Commenting on the acquisition, Mr. Sudarshan Venu, Joint Managing Director, TVS Motor Company said, “This is a momentous time for us at TVS Motor Company. Norton is an iconic British brand celebrated across the world, and presents us with an immense opportunity to scale globally. This transaction is in line with our effort to cater to the aspirations of discerning motorcycle customers. We will extend our full support for Norton to regain its full glory in the international motorcycle landscape.”
Mr. Sudarshan Venu further added, “Norton will continue to retain its distinctive identity with dedicated and specific business plans. TVS Motor will work closely with customers and employees in building the success and pre-eminence of the Norton Motorcycles brand and we look forward to growing together globally in the years to come.”