Hero MotorCorp Buys Half of Erik Buell Racing
According to a press release from Hero MotorCorp, the U.S. arm of Hero, HMCL (NA), has agreed to purchase 49.2% of Erik Buell Racing for $25 million. HMCL (NA) is said to have transferred $15 million to EBR with the remaining $10 million to be paid within the next nine months.
Hero says it will have two members and one observer sitting on the EBR board of directors but Erik Buell will continue as Chairman and CEO of the company.
“This equity partnership is a natural extension of our existing relationship with EBR, which is going to further strengthen our strategic alliance,” says Hero’s Managing Director & Chief Executive Officer, Pawan Munjal.
Hero, already a sponsor of EBR’s AMA Pro SuperBike racing effort beginning last year, will continue to receive international recognition as well as technological information gleaned from competing in the series aboard EBR machines. The financial infusion is also helping Hero attain its long-term goal of annually selling 10 million units.
“The equity partnership with EBR is reflective of our long-term vision of transforming Hero MotoCorp to a truly global two-wheeler major with footprints spread across continents, offering a wide range of technologically-advanced two-wheelers,” says Munjal. “As we go on spreading our footprint in new international markets, we will look at having extended centres of our own R&D at multiple locations around the world, developing two-wheelers for our global customers. Our evolving relationship with EBR is an initiative in that direction. We will continue to look for both organic and inorganic growth as we keep expanding globally. Our fully-owned new overseas subsidiaries such as the one in the US and in Netherlands will play important roles in our future overseas acquisitions and investments.”