Subsidiary TVS Motor Singapore Pte Ltd signed an asset purchase agreement with Norton Motorcycles Holdings Ltd and Norton Motorcycles (UK) Ltd for acquisition of the 'Norton' brand along with other associated brands.
The acquisition would enable TVS Motor Co to enter into a more premium segment compared to its current line-up of two-wheelers. The acquisition "presents us with an immense opportunity to scale globally", TVS Motor Co said.
"This transaction is in line with our effort to cater to the aspirations of discerning motorcycle customers," the company said. TVS Motor Co believes that the purchase would allow it to leverage Norton's global reach and supply chain capabilities to expand to new markets. Reports said Norton Motorcycles went into administration, equivalent to insolvency in India, in January amid growing debt and undelivered motorcycles, legal action over unpaid taxes, and a scandal over mishandling of pension schemes.
The acquisition was undertaken under the guidance of financial advisors Rothschild and Co and legal advice for the transaction was provided by Khaitan & Co and Slaughter and May.
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