Official: Hero to acquire assets of EBR for $ 2.8 million

Hero MotoCorp has announced that it will acquire the assets of its bankrupt US -based technical partner, Erik Buell Racing. As part of a settlement agreement with court-appointed receiver, Hero MotoCorp subsidiaries HMCL NA Inc and HMCL Americas Inc will take over certain tangible and intangible assets of EBR free and clear of all encumbrances, for a consideration of $ 2.8 million.

HMCL entities and the receiver have also agreed to resolve all disputes and fully give mutual release in terms of settlement agreement for all subject matters which is in any way related to EBR entities. The agreement is contingent upon the approval by the Circuit Court and the approval of the board of directors of Hero MotoCorp authorising its joinder as a direct party to the settlement agreement on or before August 10, 2015.

EBR was founded in 2009. In 2013, Hero MotoCorp acquired a 49.2% stake in the company for a sum of $ 25 million. In 2012, the Indian company had entered into an agreement with EBR to source technology for high-end bikes.

Source: Economic Times