Hero MotoCorp buys 49.2% stake in superbike company Erik Buell Racing
HMCL, A fully owned subsidiary of Hero MotoCorp in the USA, has scooped up 49.2% stake in the US-based superbike company Erik Buell Racing. The buyout has lightened Hero’s account balance by about US $25m (Rs. 148 crores).
Soon after parting ways with longstanding partner Honda, Hero MotoCorp announced a two-wheeler technology sharing agreement with Erik Buell Racing in February 2012. Hero has since been in the process of building up their own R&D base in India, with Erik Buell Racing on-board to help develop new age and cutting edge motorcycle technology to be applied to future Hero motorcycles and scooters.
The first bikes and scooters using EBR tech are still to launch here, but this buyout may help Hero’s case in pushing for new technology sooner than expected. While Hero has already pumped in US $15 million towards this buyout, transfer of the balance US $10 million amount will be completed over the next nine months, in the fiscal year 2013-14.