By Dennis Chung
The beleaguered Norton Motorcycles has been bought out by India’s TVS Motor Company. Norton, which was put into administration in January, was purchased by TVS through a subsidiary in an all-cash deal worth 16 million British pounds (US$20 million).
Norton had been struggling to pay creditors and hefty tax bill, while dealing with complaints about unfulfilled orders. Norton, and its previous owner, Stuart Garner, were also under investigation over pension fraud, with allegations of £14 million in retirement savings being funneled to prop up the motorcycle company.
TVS says it will continue production of Norton models including the Commando, Dominator and V4 RR, taking advantage of TVS’ capabilities to expand to new markets.
“Norton will continue to retain its distinctive identity with dedicated and specific business plans,” says Venu Sudarshan, TVS joint managing director. “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.”
With this acquisition, Norton becomes a second historic British brand under Indian ownership, following the Eicher Motors-owned Royal Enfield. TVS is also a partner of BMW, working with the German brand on small-displacement models like the BMW G310R and G310GS, and the TVS Apache 310RR sportbike.
Here is the full statement from TVS:
TVS Motor Company completes acquisition of Norton
TVS Motor Company, a reputed manufacturer of two-wheelers and three-wheelers in the world, today announced the successful acquisition of Britain’s most iconic sporting motorcycle, “Norton”, in an all-cash deal for a consideration of GBP16 million by acquiring certain assets of Norton Motorcycles (U.K.) Limited (in administration) through one of TVS Motor’s overseas subsidiaries. This will be one of the most interesting acquisitions of a storied motorcycle maker in recent times and will reflect TVS Motor Company’s and …read more
Source:: Norton Motorcycles Acquired by TVS