Hero MotoCorp to acquire consulting assets of US tech partner EBR
- by Team Zigwheels
- Jul 30, 2015
- | Views: 5571
As part of the settlement agreement, Hero MotoCorp and Erik Buell Racing (EBR) have come to an agreement to resolve all disputes and fully give mutual releases for all subject matters
India’s leading two-wheeler manufacturer, Hero MotoCorp recent released a statement which confirms that the company will acquire certain assets of Eric Buell Racing for a sum of US$ 2.8 million (Rs 18 crore approx.), as a settlement agreement with court-appointed receiver in the matter of bankruptcy filed by the American company.
The aforesaid settlement agreement was sealed between HMCL NA, Inc. and HMCL Americas, Inc. (both wholly owned subsidiaries of Hero MotoCorp Ltd.) and the ‘Receiver’ appointed by the Circuit Court, Wisconsin (USA) in the matter of bankruptcy matter filed by the Erik Buell Racing (EBR).
Hero MotoCorp says, “As per the Settlement Agreement, HMCL Americas Inc. has agreed to acquire the ownership of certain tangible and intangible assets of EBR free and clear of all encumbrances, for a consideration of US$ 2.8 million.”
The company further added that, “HMCL and the Receiver have also agreed to resolve all disputes and fully give mutual releases in terms of the Settlement Agreement for all subject matters which is in any way related to EBR.”
Back in 2013, after Hero and its technology partner Honda Japan parted ways, Hero had pumped in a whooping $25 million (about Rs 148 crore) to acquire 49.2 per cent stake in EBR, hoping to get some technical support from the US based company and also market Hero products in America using EBR’s network in the country. The company took this move to establish itself in the performance bike segment of India. But, as luck would have it, earlier this year EBR filed for bankruptcy, due to unforeseen circumstances.
Hero MotoCorp states that the performance of the Settlement Agreement will help the Indian two-wheeler giant’s in-house research and development teams to accelerate development of certain consulting projects, including the projects EBR was executing for the company at the time EBR filed for bankruptcy.
Hopefully, now the concepts shown during 2014 Auto Expo such as the 620cc Hastur street-fighter, iON hydrogen-fuel cell vehicle and SimplEcity electric bike will see the light of the day some time soon.