It looks like now as it was a very good operation for Erik Buell that 3 years ago Harley-Davidson shut down the former Buell Motorcycle Company. After Harley severed its ties with Erik Buell, he started the Erik Buell Racing inc. firm, launching the EBR’s 1190RS flagship model, a limited-edition high-power sports motorcycle. In a very sweet deal for Erik, Bain Capital backed Hero MotoCorp Ltd is buying 48.2% stake in Erik Buell Racing Inc (EBR) for 25 million. 15 million in EBR and the remaining $10 million will be invested within the next nine months.
For Hero MotoCorp the objective is to build up a line of better powered sporty motorcycles than its competitors in India, including its former partner and now competitor Honda. Hero MotoCorp is already the largest motorcycle maker in the world by volumes. The Indian motorcycle market of sporty motorcycles is still a low-volume segment, but a high-margin one with rapid expansion. Hero Motocorp will bank on new models from Erik Buell Racing to dominate this market and will also help EBR sells his models in Europe and the USA.