The world-renowned Norton Motorcycle Company, formerly Norton Motors, Ltd. is an English motorcycle marque in Birmingham, England, United Kingdom and is known for its beautiful two-wheelers. It was founded in 1898 as a manufacturer of “fittings and parts for the two-wheel trade”. This United Kingdom-based company is particularly known for its classic models and an electric range of luxury motorcycles that range from 200bhp, 1200 CC V4 superbikes to classic reboots.
“Acquisition of holdings”
As of 18 March, 2020, the known two-wheeler and three-wheeler multinational manufacturer TVS took control over the 122-year-old Norton Motorcycle Company in an all-cash transaction of GBP 16 million. The deal was an asset purchase agreement with Norton Motorcycles Holdings Ltd and Norton Motorcycles (UK) Ltd (both were in administration). The deal included the acquisition of the brand Norton along side other associated brands.
The acquisition was undertaken under the guidance of monetary advisors, Rothschild and
Company, and legal advice for the transaction was provided by Khaitan & Company, and
Slaughter and May.
There were rumors regarding such a deal from the start of early January as Norton Motorcycle Company was put up for bidding accounting to several issues.
“TVS Wins bids, Makes statement”
Regarding the acquisition, TVS claims that Norton had been facing management and financial issues for a while and that TVS is looking forward to helping them relieve this pressurre. The Joint Managing Director of TVS Motor Company stated, “We look forward to growing and nurturing the heritage of Norton. Norton has had management issues and economic issues. We will be able to overcome the issues that Norton has been facing for the past few years. Norton is 800 cc and above and we will serve a different customer segment with this motorcycle. A strong tie-up with BMW will continue. Acquisition of Norton is to serve a completely different segment.”
TVS has stated that they will maintain the reputation of the age-old company in terms of quality and design up to a great extent. It also expresses its wish to maintain the majority of the British employees in an aim to increase their global position and influence.
“We have not taken on any past liabilities and responsibilities. We would take on almost all existing employees. The immediate focus will be on developed markets and 21 existing markets of Norton in the US and America. We have a large number of orders which we will start delivering soon.” Venu added.
“Motive of the global increase of influence”
“This (acquisition) presents us with an immense opportunity to proportion globally. This
transaction is in line with our effort to cater to the aspirations of discerning motorcycle
customers. we’ll extend our full support for Norton to regain its full glory within the international motorcycle landscape.” He further elaborated on his statement.
This highlights the aim of the company in earning a better brand name in the international market by working towards retaining Norton’s original character and distinctiveness while boosting sales for the company and changing management to fit that of the Indian company TVS.