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TVS Acquires Norton Motorcycles

Is Norton set to see expansion under the new parent company

TVS acquires Norton motorcycles

TVS Motor company, headed currently by Venu Srinivasan announced that it acquired British iconic sports motorbike Norton in all cash deal. The chennai based bike company that manufactures very well know bikes like Apache and Scooty is more than 40 years old. Norton motorcycle company is a 120 year old company that was restarted 12 years ago in 2008. It is expected that TVS will continue production of motorcycles at Donington park using the same staff.

If history of automobile acquisitions by Indian companies are to be taken as standard, it is expected that Norton may see production increase at its parent plant while TVS may start production in India and introduce or reintroduce Norton to other markets. Exports may be produced in India for cost effectiveness while the companies DNA may be preserved with UK facilities for local production and research.

Cash transaction: The all cash buyout cost TVS 153.2 crores or GBP 16 million. According to reports certain assets of Norton Motorcycles (United Kingdom) were acquired through one of TVS’s overseas subsidiaries. This becomes the maiden overseas acquisition by TVS Motor Company. TVS has a portfolio of products mostly powered by around 200cc engines, While Norton’s portfolio starts with 1000cc.

With Mahindra acquiring BSA and secured a license to make JAWA/Yezdi bikes, Bajaj Auto went ahead with striking a deal with Triumph in January 2020. We would also mention Royal Enfield, which was revived by Eicher motors after the brand was about to go bankrupt. Most of Indian acquisitions saved the brands, unlike Chinese hostile takeovers.

With TVS at the helm, it will be worth a watch, how Norton fares and if it turns into another success story. This will be a win win situation for the British brand and TVS motorcycle company.

Image courtsey: Image by Michael Kauer from Pixabay

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Written by carbiz

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