Hero MotoCorp has entered a settlement agreement to acquire certain consulting assets of Erik Buell Racing for $2.8 million. The settlement agreement, which is still subject to approval by the Circuit Court of Wisconsin and Hero MotoCorp’s board of directors, isn’t the full acquisition of EBR that some have hoped for; instead it would let Hero retain certain research and development assets including projects EBR had been working on for Hero.
According to the announcement filed with the Bombay Stock Exchange, the assets will officially be acquired by Hero’s North American subsidiaries, HMCL NA, Inc., and HMCL Americas Inc. With the acquisition, those assets will be excluded from any other potential sale of EBR through its Chapter 128 receivership.
Hero Motocorp owned a 49.2% stake in EBR and the American manufacturer previously signed consulting deal to provide R&D services for Hero. The settlement agreement essentially lets Hero claim the technology EBR was developing on its behalf, including the tech behind the Hero HX250R pictured above.
“The performance of the Settlement Agreement will help Hero MotoCorp’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 of fling fo the Chapter 128 Receivership,” reads a statement from Hero.