Indian manufacturer Hero MotoCorp is teaming up with electronic fuel injection expert Magneti Marelli in a new joint venture. Hero will hold a 60% share in the company with Magenti Marelli controlling the other 40%. The two companies are initially investing a combined US$8.5 million into the joint venture, with a planned investment of US$27 […]
Erik Buell Racing Secures $20 Million in Foreign Investments
Erik Buell Racing has received a $20 million injection from investors. The increased funding is expected to expand the company’s product line and create about 200 jobs.
The investment comes through the somewhat fittingly-named “EB-5” program, a product of the Immigrant Act of 1990 designed to encourage investment in American companies by potential immigrants. Erik Buell Racing’s funding was secured with the help of Milwaukee-based investment fund manager FirstPathway Partners.
The $20 million in investments will allow Erik Buell Racing to expand its product line while reducing prices. At present, Erik Buell Racing is producing only one model, the $40,000 1190RS. At least three more models are expected, going under the designations RX, SX and AX.
The funding will also open avenues for exporting to other markets. Erik Buell, founder of Erik Buell Racing, tells BizTimes the company expects more than half of its products will be exported in three to four years.
“EB-5 investment funding through FirstPathway Partners is a key part of the financing structure which will allow our company to expand its product line by developing and introducing a broad line of world-class street motorcycles at lower price points than our current products,” Buell tells BizTimes. “Our research shows a very strong global market for this kind of motorcycle, and this funding will allow motorcycles designed and assembled right here in East Troy to be used in China, India, Europe – all over the world. It’s a great boost not only for our company, but also for Wisconsin’s exports and American business as a whole.”