Confirmed. Hero MotoCorp Proposal To Acquire All Erik Buell Racing Assets For 2.8 Million.

EBR14Erik Buell Racing (EBR) abruptly ceased operations last April. At that time Hero MotoCorp, through its US-based wholly owned subsidiary HMCL (NA) Inc, owned 49.2% of EBR, shares that the company acquired in 2013. As I announced last week, India based MotoCorp Hero proposed a settlement to acquire all the tangible and intangible assets of EBR, free and clear of all encumbrances. Hero MotoCorp being a public company, a stock market disclosure reveals that the transaction is for a total of 2.8 million.

EBR23At the time of the bankruptcy, EBR had an estimated $20.8 million in assets and $20.4 million in liabilities including $202,000 owed to employees. The settlement is contingent upon the approval of Hero’s board of directors and upon an agreement on August 6th of the Walworth County Circuit Court. The acquisition would permit Hero MotoCorp to continue with projects for which EBR was providing services.

Although not officially confirmed, it is probable that on all these projects Erik Buell would be back in a major role as the lead EBR consultant for Hero

10 Responses to “Confirmed. Hero MotoCorp Proposal To Acquire All Erik Buell Racing Assets For 2.8 Million.”

  1. 1 Rodent Jul 30th, 2015 at 8:44 am

    Just another normal business deal! Who supplied the vasoline?

  2. 2 JohnyLetGo Jul 30th, 2015 at 8:53 am

    Good strategy by Hero MotoCorp. Take a participation. Don’t support the biz. Let it collapse. Get the entire business less debt for a terrific price.

  3. 3 richards Jul 30th, 2015 at 10:22 am

    $20.4 million owed, will not be paid. That’s a lot of businesses getting stiffed.

    $202,000 owed to employees who won’t get what they earned.

  4. 4 NoH2oh Jul 30th, 2015 at 10:25 am

    I think what you may see is a bit different than this. Hero gets all R&D for future platforms EBR was developing for them, for 2.8M and in return gives up its share in EBR. This would help facilitate a full purchase by a third party of the company. Doubt Erik Buell will be doing anything for or with them in the future. Hero wants to come to the states. They might need a name change.

  5. 5 TJ Martin Jul 30th, 2015 at 10:44 am

    Gaining access to the US market was and is HERO’s only reason for getting involved with EB Racing with HERO as JLG said bankrupting EBR and then buying out the lot on the cheap . All bets are that was HERO’s strategy from day one . And yes isn’t it amazing that the press tries to make this deal sound so good when in fact so many people including investors , employees , lenders etc are getting shafted left and right by this ? And as far as EB himself is concerned you can be guaranteed HERO will be having nothing more to do with the man and all bets are no one else will either . The sad fact being as good an engineer/designer as EB is the man is completely out of touch when it comes to business !

  6. 6 Dr. Rock Jul 30th, 2015 at 11:00 am

    The divorce is settled then? Good riddance to Delhi and how the whole thing went down. Hurt a lot of people who won’t forget anytime soon.
    Funny Hero gives Tiger Woods $32million and stiffs EBR. Says a lot about how they choose to do business. As NoH2o put it, EBR manufacturing assets still up for grabs and if the right company wants it, there is still hope. Heard that auction date is set for 08/05. Stay tuned…..
    If you know EB, you know the dude definitely has nine lives! My gut tells me this isn’t over yet…..

  7. 7 Guy Jul 30th, 2015 at 12:09 pm

    I think I smell something Fishy.

  8. 8 NoH2oh Jul 30th, 2015 at 1:48 pm

    TJ, if the motor company had put as much $$$ into developing, supporting and branding Buell as they did to shut her down this would not even had happened. But that is another story. They should have just sold him his name and patents back for $1.

  9. 9 Zenaldo Jul 30th, 2015 at 3:11 pm

    Big $$$ wins again basically and the little guy gets hammered again… same story just different names/players..

  10. 10 B. D. Aug 1st, 2015 at 11:22 pm

    It’s a ;longshot, but with that Rotax motor, it sure would be sweet to see BPR buy the assets, hire EB as a consultant, and put the bike back into production. The bike itself is incredibly trick and even though it was never a big seller, it was never properly marketed.

    Selling it exclusively through H-D dealers was a loser from the beginning. Selling it at $40K ea with no dealer network was just silly. By the time the price came down to half that, it was still overpriced and still had just a few dealers.

    But sold through Victory or Indian dealers… who knows? Neither has any sportbike offerings yet, and that is what many of the young buyers want.

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