autoevolution

Hero Buys "Certain Consulting Project" from Erik Buell Racing

The first auction aimed at selling the Erik Buell Racing assets as a whole yielded a rather different outcome. While we anticipated that another company or group of investors would step in, fork out the money and get busy building new bikes and a new strategy, only certain things have been sold in the auction.
Hero buys EBR's R&D assets 1 photo
As a document sent by Hero Motocorp to the Bombay Stock Exchange reads, the Indian giant only bought "ownership of certain tangible and intangible assets of EBR Entities, free and clear of all encumbrances, for a consideration of USD 2.8 million."

The same document (via A&R) states that Hero bought EBR's consulting business. This means that Hero Motocorp considers that the deal is enough to settle whatever claims they had. We know that EBR would offer development support and consulting to Hero as part of the deal they had when the Indian manufacturer acquired a minority in the North American company.

Several bike concepts were presented by Hero after the tie-up, and they showed obvious Erik Buell Racing genes. It now looks like Hero got hold of whatever common projects EBR was working on and is rather happy with that.

The rest of EBR is still up for sale


Even though we don't know exactly what is the extent of Hero's "shopping list," we can assume that they only bought what seemed to be most lucrative for their business. It's hard to believe that Hero would, all of a sudden, get involved in building 200 horsepower 1,200cc superbikes, isn't it?

This leaves the manufacturing part of Erik Buell Racing still up for grabs, and for an even better price. The remaining EBR assets are said to be auctioned next week, and it looks like only then we will know the fate of the American Sportbike.

 
 
 
 
 

Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories