TVS acquires Britain’s 122 years old Norton Motorcycles for £16 million
TVS Motor Company has acquired Britain’s most iconic bike manufacturer Norton Motorcycles Ltd in all-cash transaction of GBP 16 million on Friday. One of the most iconic British motorcycle brands of all time, Norton Motorcycles manufactures popular products like V4 RR, Dominator, Commando 961 Cafe Racer MK II and Commando 961 Sport MK II.
“The acquisition of assets of Norton Motorcycles (UK) Limited was done through one of the TVS Motor’s overseas subsidiaries,” the company said in a regulatory filing on Friday evening. TVS said the transaction was concluded by Project 303 Bidco Limited, a newly incorporated company that was acquired by TVS Motor’s subsidiary to make the Norton deal.
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 materialize. The 122-year-old Norton Motorcycles ran out of cash in January and failed to pay taxes.
TVS Motor’s Joint Managing Director Sudarshan Venu 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.”
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.”
“We are delighted to grow and deepen the relationship with TVS Motors with this landmark deal. We were pleased to assist them in the cross-border acquisition of this legendary brand, and that too in these troubled times globally. Also, a big challenge for us to contend with was to complete a complex acquisition remotely through times where physical travel and meetings are impossible and unsafe. We truly value and cherish the trust and faith TVS have reposed in us,” Khaitan & Co Partner Sameer Sah said.