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TVS Motor Company today announced that it has fully acquired Norton, the legendary British motorcycle maker, in a £ 16m cash deal.
TVS Motor Company, the popular South Indian-based motorcycle maker famous for models like the Apache, has just announced the successful acquisition of Norton, arguably Britain’s most iconic motorcycle maker. The Indian bicycle maker said it had acquired the British company in a cash deal of GBP16 million (Rs. 153 Crores).
TVS has acquired assets of Norton Motorcycle (UK) Limited through one of its foreign subsidiaries. The latest development can be seen as one of the largest acquisitions of a famous motorcycle manufacturer by an Indian manufacturer of conventional motorcycles. Norton was founded by James Lansdowne Norton in Birmingham in 1898. Stuart Gardner, the current CEO of Norton, is being investigated for pension fraud. According to UK regulators, Stuard Gardner, the administrator of three Norton pension plans, is accused of defrauding investors by promising them tax-free income, but the same did not materialize.
Well, at this stage, there is no clarity about the future plans of the two motorcycle brands. However, it will be quite interesting to see how TVS works with Norton. The relationship that the South Indian-based manufacturer has with BMW Motorrad cannot serve as an example, as the former has no control over the latter because the partnership is not one of equity.
With Norton, however, things can be different as TVS will have easy access to Norton’s new 650cc platform. Through this, TVS could help rival Royal Enfield 650cc twins. TVS is confident that thanks to the strong synergy between the two brands, Norton Motorcycle will benefit by leveraging TVS Motor Company’s global reach and supply chain capabilities to expand into new markets.
Commenting on the acquisition, Mr. Sudarshan Venu, Joint Chief Executive Officer, TVS Motor Company said: “This is a momentous time for us at TVS Motor Company. Norton is an iconic British brand celebrated worldwide and presents us with an immense opportunity to scale globally. This transaction is in line with our effort to satisfy the aspirations of the most demanding motorcycle customers. We will extend our support to Norton to regain all its glory on the international motorcycle scene.. “
Mr. Sudarshan Venu further added: “Norton will continue to maintain its distinctive identity with dedicated and dedicated business plans. TVS Motor will work closely with customers and employees to develop the success and preeminence of the Norton Motorcycles brand and we look forward to growing together globally in the years to come.. “
