A few days ago we told you about TVS Motors’ discussions with the administrators of Norton Motorcycles. We also published an article detailing Norton’s financial demise. But now, the BBC is reporting that a deal has been struck and TVS has purchased Norton. Norton went into administration in January 2020 at a potential cost of approximately 100 jobs.
But Friday, TVS Motors, India’s 3rd largest motorcycle manufacturer announced the acquisition of the iconic British brand. The agreement is an “all-cash” deal for £16 million (~$20M). In return for the cash, TVS acquires certain assets of Norton Motorcycles (UK) through one of TVS Motor’s overseas companies.
TVS says that it hopes to revive and expand the brand. In a statement, Joint Managing Director Sudarshan Venu said:
“This is a momentous time for us. Norton is an iconic British brand celebrated across the world, and presents us with an immense opportunity to scale globally.
“We will extend our full support for Norton to regain its full glory in the international motorcycle landscape.”
Venu also said that TVS will work closely with Norton’s employees and customers and that Norton will “retain its distinctive identity” while TVS looks to expand into new markets.
Overall, this looks like good news for the brand. But there are some details that still need to be worked out. Even though the deal has been completed, it is still unclear how much, if any, money Norton’s creditors will receive. There’s a long list of companies and people that are owed money by Norton including employees, contractors, suppliers and even pension funds.
We’ll have to wait and see how Norton’s administrators BDO handle the disbursement of funds. Hopefully, all of Norton’s creditors will at least receive some compensation, but the outlook for that is bleak.