TVS acquires Norton, Britain’s most iconic sportbike brand
TVS Motor Company on Friday announced the acquisition of the UK’s most iconic sports motorcycle, the ‘Norton’, in an all-cash deal, for Â£ 16million, by acquiring certain assets of Norton Motorcycles (UK) (under administration), via one of TVS Motor’s Overseas Weapons. It would be one of the most exciting acquisitions by a reputable motorcycle maker, and reflects the growing importance of TVS and India in the global two-wheeler market, the company said.
Founded by James Lansdowne Norton in Birmingham (1898), Norton Motorcycles is one of the most popular British motorcycle brands of all time.
Since the 20th century, Norton has been renowned for its classic models and eclectic lineup of luxury motorcycles, ranging from the authentic retro classic reboots of the famous Commando to their contemporary 200hp, 1200cc V4 superbikes.
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Sudarshan Venu, Deputy General Manager of TVS Motor, said, â€œThis is an important moment for us at TVS Motor Company. Norton is an iconic British brand.
Norton had a management problem, which TVS – with its global supply chain capabilities and financial backing – helped overcome. Although there are short-term concerns due to Covid-19, TVS Motor has stepped up its cost-cutting measures and reduced capital spending. Given the nature of Norton, which is not a capital-intensive company, there does not appear to be any immediate concern. Manufacturing will continue at the existing facility and many customer orders will be fulfilled cost-effectively.
In the immediate term, the focus would be on developed markets, in which Norton already has a presence, before expanding into major developing markets. The company has a close relationship with BMW, which will continue. Venu said, â€œTVS Motor will work closely with customers and employees to build the success and preeminence of the Norton Motorcycles brand. “
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â€œIt’s a brand that gives us a huge opportunity to grow and create value. Funding was done on an internal accrual basis. This is an asset purchase, since this company has had a bit of a rough time in recent years, we have not taken any liabilities or responsibilities in the past, â€he added.
The company is committed to absorbing all 55 to 60 employees.
â€œWe are also seeing synergies within the supply chain and distribution, and we look forward to the products under development. We have the intellectual property and the trademark rights, â€Venu said.
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