The question of who is going to buy Norton appears to have been answered. This morning we received details of the Transfer of Undertakings Regulations 2006 (TUPE) for current Norton staff, which will see their employment shifted from Norton to Project 303 Bidco Limited.
Project 303 Bidco Limited is a London based company that was formed at Companies house on the 2nd April 2020. A quick look at the names listed as associated with the business shows the name Kunnath Narayanan Radhakrishn as the director.
Kunnath Narayanan Radhakrishn is listed elsewhere as the President, CEO and Director of TVS Motor Holdings Limited.
The TUPE notice as sent to staff is signed by Sharad Mohan Mishra, on behalf of Project 303 Bidco Limited. A quick search for that name online shows that Sharad is listed as the President of Group Strategy at TVS Motor Company.
While the sale isn’t complete, the fact that the TUPE notice has been issued to staff is a clear indication of the intention to buy Norton from TVS.
Staff currently employed at Norton will continue to be paid in the same way and are expected to carry on working the same hours (08:00 – 17:30 with 30 minutes unpaid for lunch) at the glorious home of Norton Motorcycles, Donington Hall.
The only change appears to be the Norton Pension scheme, which will cease to apply. Whether this development is connected in any way to NMC123 Ltd and Stuart Garner remains to be seen. We will, of course, keep you updated.
As of the afternoon of Friday 17th April, TVS Motors has agreed to pay £16m in a clash deal for various Norton assets.
A statement from BDO reads:
BDO secures the sale of the business of Norton Motorcycles (UK) Limited to a subsidiary of TVS Motor Company
United Kingdom, April 17, 2020: BDO LLP business restructuring partners Lee Causer, Ryan Grant and Danny Dartnaill have secured the sale of certain assets of Norton Motorcycle Holdings Limited (in administration) and Norton Motorcycles (UK) Limited (in administration) (together, ‘Norton’) to an indirect subsidiary of TVS Motor Company Limited on April 17, 2020 for GBP 16 Million in an all cash deal. TVS Motor Company is a reputed two-wheeler manufacturer in India and globally and is the flagship company of the USD 8.5 billion TVS Group, headquartered in Chennai, India.
Under the agreement, TVS Motor Company’s subsidiary has acquired the business and certain assets of Norton Motorcycles, as well as a licence to occupy the existing manufacturing premises for the next six months. The purchaser has agreed to work closely with customers in building the success and pre-eminence of Norton, and employees of Norton will transfer to the purchaser. This acquisition will also unlock strong synergies between both the brands and propel Norton’s growth by leveraging TVS Motor Company’s global reach and supply chain capabilities.
Joint Administrator Lee Causer said: “In challenging circumstances, we have been able to secure the future of the Norton brand. We are delighted that the sale to TVS Motor Company will protect jobs and provide a highly beneficial outcome to creditors.”
Commenting on the acquisition, Mr. Sudarshan Venu, Joint Managing Director, TVS Motor Company said, “This is a momentous time for us at TVS Motor Company. Norton is an iconic British brand celebrated across the world. Norton with its exciting range of products presents us with an immense opportunity to cater to the aspiration of discerning motorcycle customers around the world. We will extend our full support to Norton to regain its rightful glory.”
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