- TVS Motors Company has bought famous British motorcycle brand Norton Motorcycles for Rs 153.12 crore in an all-cash transaction.
TVS Motors Company has bought Norton Motorcycles from Britain for GBP16 million (Rs 153.12 crore). Norton Motorcycles is one of the most famous British motorcycle brands of all time and manufactures popular goods such as V4 RR, Dominator, Commando 961 Cafe Racer MK II and Commando 961 Sport MK II.
“We would like to inform you that today (17 April 2020) an overseas subsidiary of TVS Motor Company Ltd (TVS Motor) has signed an asset purchase agreement with, among others, Norton Motorcycles Holdings Ltd (in administration) and Norton Motorcycles (in administration) Ltd (together Norton) to acquire certain properties from Norton including the Norton brand and other related brands. The transaction was also completed simultaneously,” TVS Motor Company said in a regulatory filing.
“This deal is an all-cash transaction for GBP16 million and was completed by Project 303 Bidco Ltd. It is a newly formed company (with no business) purchased by TVS Motor’s subsidiary (TVS Motor (Singapore) Pte. Ltd) for GBP1, immediately prior to the signing and closing of the aforementioned acquisition agreement,” he said.
Norton Motorcycles was founded in 1898, in Birmingham, England, by James Lansdowne Norton. TVS Motor Company is one of India’s largest manufacturers of two-wheeler engines.
“This is a momentous time for us at TVS Motor Company. Norton is an iconic British brand revered all over the world and provides us with a huge opportunity to expand globally. This deal is in line with our efforts to meet the needs of discerning motorcycle customers. We will extend our full support to Norton to reclaim its full glory in the international motorcycle landscape,”
Though Rothschild and Co were TVS Motor Company’s financial advisors for the acquisition, Khaitan & Co, and Slaughter and May provided legal advice for the transaction to the two-wheeler manufacturer.
“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.