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Mustang Seats Acquired by Veteran-founded Investment Firm

By General Posts

Mustang Seats Acquired by Veteran-founded Investment Firm LDR Growth Partners

New Growth-Oriented Owners Will Invest in Company’s Factory Operations, Marketing Programs and Presence with Customers

Three Rivers, Massachusetts – April 4, 2022 – LDR Growth Partners today announced the acquisition of Mustang Motorcycle Products LLC, maker of Mustang Seats and related motorcycle accessories, in a private transaction closed last Friday. Mustang, known for high-quality, handmade motorcycle seats, was founded in 1980 near Three Rivers, MA, where the company maintains factory operations. Mustang was purchased out of Motorsport Aftermarket Group, owned by a group of investors, led by Monomoy Capital Partners.

“Mustang Seats presents a tremendous opportunity for us at LDR,” said William Brame, partner at LDR and co-head of its acquisition business. “Our unique approach is in providing growing companies the resources they need to continue to expand while identifying areas for new value creation. We’ll invest in people, technology, and the machinery the company needs to help deliver the iconic Mustang Seats to motorcycle riders looking for our products domestically and internationally.”

Mustang employs 85 people in a historic facility in Three Rivers. The company was founded by Al Simmons and named after the legendary P51 military aircraft from World War II. Mustang designs and manufactures a variety of styles of seats, with fitments for all major brands of motorcycles. The company also offers rider and passenger backrests and seating-related products.

LDR Growth Partners is a private investment firm focused on acquiring and growing unique, cash flow generating businesses in the manufacturing, industrial products, and transportation sectors. The company currently owns and operates Whitman Controls, a 50-year manufacturer of process automation controls with large, multinational customers across a range of industries. LDR, founded in 2011 by three US Army officers, is also the owner of LDR Advisory Partners and LDR Leadership, firms which focus on improving company, employee and leadership performance.

LDR intends to keep Mustang’s operations in its current primary location as it adds manufacturing technology, production capacity and marketing capabilities to the organization. The company has added nearly 20 additional employees since September of 2021 and the new owners anticipate hiring additional resources in the coming months to accomplish their goals.

“We believe in Mustang’s product, in its people and in the strength of the motorcycle accessory market,” continued Brame. “Our leadership is excited about entrenching ourselves in this company and in the riding community. We look forward to meeting our loyal customers and partners at rallies and events this year.”

“The leadership and employees here at Mustang couldn’t be happier about the news,” said Mustang GM Mike Cornelius. “The additional investment from LDR will help us take the next step forward. Our orders show that riders want Mustang Seats and our team is excited to continue to deliver them to our loyal dealers and customers.”

About Mustang Motorcycle Products
Mustang Seats are handcrafted in the USA to give riders the style they want and the comfort they deserve. Mustang is known worldwide as the highest quality motorcycle seats for virtually all brands of motorcycles. Based in Three Rivers, Massachusetts, the company sells seats and accessories through its network of premier powersports dealers and direct to consumers through www.mustangseats.com

About LDR Growth Partners
LDR Growth Partners supports growth-oriented businesses, management teams, and entrepreneurs with equity capital and precision support to scale operations and maximize returns under a spirit of market leadership, creativity, and innovation. LDR is led by a five-person cross-functional leadership team, and was founded in 2011 by U.S. Army Officers, with a common vision for business leadership and the power of building, supporting, and growing exceptional teams. The company has offices in Stamford, CT, Houston, TX, and Washington DC.
Visit their Website at http://www.ldrgp.com/

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Norton will fill the high-end technology deficit for TVS Motor

By General Posts

by Chanchal Pal Chauhan from https://auto.economictimes.indiatimes.com

Norton is one of the most iconic British brands, besides Triumph, Royal Enfield and BSA. Incidentally now all of the remaining famed British brands either have Indian owners or strong engineering relationships with local entities.

Another Indian company bags a storied European brand.

This time it’s TVS Motor, the third largest two wheeler maker from the world’s biggest bikes and scooter market, and getting ‘Norton’ under its belt would not just fill the technology deficit, but would also make it a serious contender in the super-bike category, something its rivals are always vying for.

Industry veterans cite it as a major catch for any aspiring Indian company aiming to hit the global circuit in style. “Norton is a major brand in the developed markets of Europe and the US and at Rs 150 crore, it’s a steal. The brand has a major pull and would fill the void for TVS Motors in technology and take it many years ahead of its rivals,” says a two wheeler specialist.

TVS Motor Company has announced the Norton acquisition on Friday. Norton is one of the most iconic British brands, besides Triumph, Royal Enfield and BSA. Incidentally now all of the remaining famed British brands either have Indian owners or strong engineering relationships with local entities.

Typical of the cash-starved British brands, Norton was started in Birmingham in 1898 by James Lansdowne Norton. It has a fantastic global appeal, a strong unique design and British heritage carried for decades. It has always been closely associated with “Motor Racing” and also makes superbikes in various categories across markets.

It is a brand which has a huge opportunity for TVS to scale up and create value. TVS Motors can now focus on these developed markets with a known brand and the hugely expanding recreation biking segment. This classic and unique British design and heritage will be the core for the company looking at building out a future in premium, luxury and classic bikes as well.

TVS has spent about 16-million British Pounds on the acquisition, funded through internal approvals and, it is an asset purchase. The cash savvy Indian companies have been on the prowl with Bajaj Auto acquiring KTM and Husqvarna marquee brands in the past.

Meanwhile, the SUV major, Mahindra&Mahindra through its two wheeler company had also acquired another iconic British motorcycle brand, BSA a few years back. Mahindra also owns 60 percent of Classic Legends Private Limited (CLPL), who had re-introduced the Yezdi brand back into India.

The two wheeler market leader Hero MotoCorp had acquired American superbike maker Erik Buell Racing or EBR, – the East Troy, Wisconsin-based firm, to harvest cutting-edge technology and design to develop future models. However, the deal turned sour and the Indian entity lost a good amount of money.

EBR, a fairly new enterprise, turned bankrupt a few years after the acquisition and the technology it was developing almost got wasted for Hero MotoCorp and failed to harvest any of its investments. Subsequently, it has developed new technology centres at Kukas in Rajasthan and Germany to fill the tech-deficit.

The cash-rich Indian companies have been looking at the global spectrum of motorbiking and Norton gets TVS to that niche level.

Virtually on a bankruptcy mode, Norton had undergone a rough patch in the past two-years, though TVS has not taken any of its past liabilities or the responsibilities. While the Chennai-based entity has committed to meet all customer commitments and will carry on with all the existing employees too. There are about 55-60 of the permanent employees serving Norton at the time of acquisition as per the company website.

Industry insiders say what is the need for TVS to acquire Norton of UK at approximately Rs 150 crore at such an unpleasant hour, amid the coronavirus scare and massive uncertainties, especially when they already have a tie up with BMW Motorrad.

An industry veteran quipped, “BMW tie-up restricts them to 500cc (in terms of engine capacity), whereas with Norton acquisition they can wheel out 650-1800cc of biking. Moreover this opens up the entire Europe and the US markets for them … Norton may not be too popular in the West, but mind you it is strong in technology and engines, which will determine the future of performance biking and motor racing…”

According to Sudarshan Venu, Joint Managing Director, TVS Motor Company, “Norton is an iconic British brand celebrated across the world, and presents us with an immense opportunity to scale globally. We will continue to retain its distinctive identity with dedicated and specific business plans.”

Due to the challenges it (Norton) faced in the last few years, TVS insiders believe in the flipside there’s potential to scale up the company to create massive value in the long-term from the new acquisition to the Indian two wheeler company.

Norton is a brand that always stood for bespoke production, craftsmanship and unparallel motoring luxury along with unique design and innovation, something TVS has been looking for and really seeks to build out. In fact, each bike costs upwards of 25,000 British Pounds and is custom-built for the customer in those markets.

As for the industry gains, TVS would be eyeing huge synergies across supply chain and distribution. These gains would be beyond the product and the company would be looking forward to the new products in the pipeline. TVS has got all the intellectual proprietary and brand rights and is looking forward to resurrecting and scaling it in the future.

TVS Motor Company, a reputed manufacturer of two-wheelers and three-wheelers in the world, has operations across a dozen international markets like Indonesia, Philippines, Yeman, Columbia, Kuwait, Yeman, Honduras etc. The new string; Britain’s iconic sporting motorcycle, Norton will carve out TVS into a storied motorcycle maker of modern times and will reflect its rising prominence in the highly competitive international two-wheeler market.

TVS acquires Britain’s most iconic sporting motorcycle brand ‘Norton’

By General Posts

by TE Narasimhan from https://www.business-standard.com

Founded by James Lansdowne Norton, in Birmingham, in 1898, Norton Motorcycles is among the most popular British motorcycle brands of all time and is one of the most emotive marques today

TVS Motor Company on Friday announced the acquisition of the United Kingdom’s most iconic sporting motorcycle ‘Norton’ in an all-cash deal, for £16 million, by acquiring certain assets of Norton Motorcycles (UK) (in administration), through one of TVS Motor’s overseas arms. This would be among the most interesting acquisitions of a storied motorcycle maker, and reflects TVS’ and India’s rapidly rising prominence in the global two-wheeler market, said the company.

Founded by James Lansdowne Norton in Birmingham (in 1898), Norton Motorcycles is among the most popular British motorcycle brands of all time.

Since the 20th century, Norton has been renowned for its classic models and eclectic range of luxury motorcycles, ranging from the authentic retro classic reboots of the famous Commando to their contemporary 200 bhp, 1200cc V4 super-bikes.

Sudarshan Venu, joint managing director of TVS Motor, said: “This is a momentous time for us at TVS Motor Company. Norton is an iconic British brand.”

Norton had some management issue, which TVS — with its global supply chain capabilities and financial support — helped overcome. Though there will be some concerns in the short term due to Covid-19, TVS Motor has enhanced its cost-reduction measures, and cut down on capex. Given the nature of Norton, which is not a capex-heavy business, there seems no immediate concern. Manufacturing will continue in the existing facility, and there are many customer orders that will be fulfilled in a profitable manner.

The immediate focus would be on developed markets, in which Norton is already present, before expanding in key developing markets. The company has a strong relationship with BMW, which will continue. Venu said, “TVS Motor will work closely with customers and employees in building the success and pre-eminence of the Norton Motorcycles brand.”

“It is a brand, which gives us a huge opportunity to scale up and create value. The funding has been through internal accruals. It is an asset purchase, since this company had a slightly rough time in the last few years, we have not taken any past liabilities or responsibilities,” he added.

The company has committed to absorb all 55-60 employees.

“We also see synergies across supply chain and distribution, and are looking forward to the products in the pipeline. We have got the IP and the brand rights,” said Venu.

by Dia Rekhi from https://economictimes.indiatimes.com/

Chennai: TVS Motor CompanyNSE 8.96 % on Friday announced that it has acquired Britain’s iconic sporting motorcycle, “Norton”, in an all-cash deal for a consideration of GBP16 million by acquiring certain assets of NortonNSE 11.96 % Motorcycles (U.K.) Limited (in administration) through one of TVS Motor’s overseas subsidiaries.

The brand is renowned for its classic models and eclectic range of luxury motorcycles.

“Norton is an iconic British brand celebrated across the world, and presents us with an immense opportunity to scale globally. This transaction is in line with our effort to cater to the aspirations of discerning motorcycle customers.

We will extend our full support for Norton to regain its full glory in the international motorcycle landscape,” said Sudarshan Venu, Joint Managing Director, TVS Motor Company.

He added that the brand, which was founded by James Lansdowne Norton, in Birmingham, in 1898 will retain its distinctive identity with dedicated and specific business plans.

Sudarshan said TVS Motor Company is excited about the existing and upcoming products at Norton Motorcycles including Commando, Dominator and V4 RR. Confident of the strong synergy between both the brands, he said Norton Motorcycles can leverage TVS Motor Company’s global reach and supply chain capabilities to expand to new markets.

India’s TVS Motor snaps up British brand Norton Motorcycles

by Pamela Barbaglia from https://www.reuters.com

India’s third-largest motorbike manufacturer TVS Motor (TVSM.NS) has sealed a $20 million deal to buy British brand Norton Motorcycles as part of a distressed sale.

The all-cash transaction, which was announced on Friday, will see the Indian firm take control of the 122-year-old Leicestershire brand for 16 million pounds ($19.98 million) through one of its overseas subsidiaries.

It marks the latest swoop by an Asian company on an iconic British brand, after Jaguar Land Rover became part of Tata Motors.

“Norton presents us with an immense opportunity to scale globally,” said TVS’s joint managing director Sudarshan Venu, adding his firm would provide “full support for Norton to regain its full glory”.

Reuters was first to report that an agreement had been reached, with TVS pledging to revive the British brand which is controlled by Chief Executive Stuart Garner.

TVS will invest in some of Norton’s most famous models, including Commando, Dominator and V4 RR.

Discussions between TVS and accountancy firm BDO – which acted as Norton’s administrator – kicked off earlier this year after the British firm, founded by James Lansdowne Norton in 1898, fell into administration in January.

Venu said TVS, which is listed in India with a market value of $1.8 billion, would work closely with Norton’s employees and customers to retain its identity and outline a specific business plan.

Rothschild acted as TVS’s financial adviser on the deal, while law firms Khaitan & Co and Slaughter and May provided legal advice.

Damon Motorcycles Acquires Mission Motors, The Future Looks Bright

By General Posts

by Florin Tibu from https://www.autoevolution.com

Damon Motorcycles’ Hypersport electric bikes revealed at CES were a huge hit, with the entire limited fleet of Founders Edition machines already sold out in pre-sale. The company now takes another big leap forward with the acquisition of the IP portfolio of Mission Motors, one of the strongest names in the EV powertrain segment.

The move might seem a bit surprising, but it shows that Damon Motorcycles are dead-serious about the development of future, more competitive models in this growing market.

Among the technologies that are now property of Damon we find the proven designs that helped break the AMA electric land speed record at the Bonneville Salt Flats, also setting new records at Laguna Seca in 2011, the 1/4 mile drag strip at Sonoma Raceway in 2012, or the Isle of Mann TT Zero race in 2014. The PM200 electric motor, the acclaimed Mission Inverter and the Skyline Telematics will now be further developed and integrated in new models that are en route to consumers.

While Damon’s Hypersport Founders Edition consisted of only 25 units, the company currently has two more special bikes on pre-sale. The Hypersport Premier Arctic Sun and the Midnight Sun, in white-gold and black-gold trim, respectively, each with a $39,995 price tag. Securing one requires a $1,000 deposit while offer lasts. If special editions are a bit off your budget, but you still want an electric Damon bike, you can also get the standard version, Hypersport HS, which tips the scales at a more palatable $24,995.

The Damon Hypersport is advertised with the “200 Making it count” punch line, emphasizing on the 200 horsepower, 200 mph top speed and 200-mile range figures. The bikes come with a liquid-cooled 21.5 kWh battery feeding a PMAC liquid cooled 160 kW motor that can do 0-60 mph in less than 3 seconds. The advertised charging time is less than three hours on a Level 2 charger.

The combined highway/city range is said to exceed 200 miles, and Damon says that doing 70 mph on a highway yields a ~161 mile range, whereas doing only 60 mph increases the autonomy to 201 miles. Still, we all know these figures can vary quite a bit, depending on weather conditions or a heavy hand.

Among the notable technologies aboard the Damon Hypersport we see the Brembo brakes and Ohlins suspensions, alongside the two proprietary features, CoPilot and Shift. CoPilot is an advanced warning system that uses dual 1080p cameras, haptics and LED alerts for forward collising warnings and blind spot detection for 360-degree safety. Shift is yet another feature embedded in the Hypersport, allowing the rider to effortlessly switch the position of the seat, pegs, handlebars and windscreen for sport and commuting scenarios at the push of a button.

Now, with Mission’s knowledge and Damon’s drive for creating new and exhilarating electric motorcycles, we can expect even more machines in the near future, and hopefully, a more affordable option to expand Damon’s customer base.

Harley-Davidson Acquires Company That Makes Electric Bikes for Kids

By General Posts

Harley-Davidson is trying to attract a new generation of riders at a very young age. The iconic motorcycle company announced Tuesday that it was buying StaCyc, which makes two-wheel electric bikes for kids.

StaCyc has two models — the 12eDrive and 16eDrive — that the company describes as “the perfect choice for little rippers” between the ages of 3 and 7.

The bikes have a top speed of about 10 miles per hour and sell for a range of $649 to $699.

Harley-Davidson said in a statement that Harley-Davidson branded versions of StaCyc’s two models will be available at select Harley-Davidson dealers in the United States in the third quarter of 2019.

“The StaCyc team shares the same vision we have for building the next generation of riders globally and we believe that together, we will have a significant impact in bringing the fun and enjoyment of riding to kids everywhere,” said Heather Malenshek, Harley-Davidson senior vice president of marketing and brand, in the statement.

Harley-Davidson is increasing its bets on electric vehicles as sales of traditional bikes slow.

The company has already announced plans to launch the LiveWire premium electric motorcycle this fall. It is also developing other electric bikes that it plans to start selling in 2021.

Harley-Davidson needs new growth opportunities as the company struggles to deal with tariffs from the Trump administration that have hurt earnings.

Sales and profits are expected to fall this year and revenue is only expected to rebound slightly in 2020.

Shares of Harley-Davidson have rallied this year with the rest of the market, rising 10% so far in 2019. But the stock is trading nearly 20% below its 52-week high.