TVS buys UK’s iconic bike brand Norton

TVS Motor Company has said that it has entered into an agreement with the UK-based iconic bike maker Norton Motorcycles to acquire its assets and the brand for 16 million pounds in an all cash deal. Norton went under administration (became insolvent) in January. The transaction is an asset purchase and hence there is past liability of the company that will get added to TVS Motor’s books. The transaction is effective Friday.

Founded in Birmingham in 1898, Norton Motorcycles has changed hands several times. It is among the popular British motorcycle brands of all time and an emotive marque. This will be one of the most interesting acquisitions of a storied motorcycle maker in recent times as TVS joins Mahindras, who acquired another iconic brand Jawa .

“Norton is an iconic British brand celebrated across the world, and presents us with an immense opportunity to scale globally. This transaction is in line with our effort to cater to the aspirations of discerning motorcycle customers. We will extend our full support for Norton to regain its full glory in the international motorcycle landscape,” said Sudarshan Venu, Joint MD of TVS Motor.

“Its design is very unique and the R&D teams of Norton and TVS will work towards improving Norton.” He said that the acquisition would be funded through internal accruals and it was not capital-intensive.

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