| Log in
Reuters

Hero MotoCorp to buy EBR’s consulting business for $2.8M

28 July, 2015

Hero MotoCorp, world’s largest two-wheeler maker by volume, has entered into a settlement agreement related to the bankruptcy protection of US-based sports bike maker Erik Buell Racing (EBR) and has agreed to acquire its consulting business for $2.8 million, according to a stock market disclosure.

It will acquire certain tangible and intangible assets of EBR entities, free and clear of all encumbrances, it said.

The move would allow the Indian bikemaker’s R&D team to continue with some of the projects for which EBR was providing services.

In 2013, Hero MotoCorp, through its US-based wholly owned subsidiary HMCL (NA) Inc, had bought 49.2 per cent stake in EBR for Rs 150 crore. In April this year, EBR had declared bankruptcy and shut down its operations.

EBR is a five-year-old firm started by Eric Buell, a former executive with the iconic motorcycle maker Harley Davidson. Buell had earlier formed Buell Motorcycle Company, but eventually sold it to Harley Davidson. After Harley Davidson shut Buell Motorcycle a few years ago, Buell moved out to start up again. Harley Davidson continues to hold the brand rights for Buell but EBR is an independent venture of its founder.

Hero MotoCorp shares were trading at Rs 2528.95 each, down 2.94 per cent on BSE in a weak Mumbai market on Tuesday at 1.59 PM.


Leave Your Comment
Hero MotoCorp's American sports bike JV Erik Buell shuts up shop

Hero MotoCorp’s American sports bike JV Erik Buell shuts up shop

Bhawna Gupta 3 years ago
US-based sports bike maker Erik Buell Racing (EBR), in which Hero MotoCorp...
Hero MotoCorp buying 49.2% in American sports motorcycle maker Erik Buell Racing for $25M

Hero MotoCorp buying 49.2% in American sports motorcycle maker Erik Buell Racing for $25M

Bhawna Gupta 5 years ago
Bain Capital-backed Hero MotoCorp Ltd, through its US-based wholly owned...
News Roundup: Actis zeroes in on global PE fund to offload Nilgiri stake

News Roundup: Actis zeroes in on global PE fund to offload Nilgiri stake

TEAM VCC 5 years ago
Actis, an emerging markets-focused private equity fund with $5 billion (Rs 29...
No Comments

Hero MotoCorp to buy EBR’s consulting business for $2.8M

Powered by WordPress.com VIP