Erik Buell Racing sold for $2.25 Million

The East Troy company went up for auction a few days back and the winning bid of $2.25 million, made by Atlantic Metals LLC was the lucky one to acquire Erik Buell Racing(EBR). Atlantic Metals has acquired all of EBR’s manufacturing assets (machines, parts, tools, etc), as well as the company’s intangible assets (trademarks, patents, databases, etc). Among all the tangible and intangible assets purchased, along with the consulting work acquired by Hero MotoCorp, EBR was left with a little over $5 million. Former EBR employees will be the first to reap that amount, getting reimbursed for paid time off owed to them. Now with the sizeable amount $20.4 million in liabilities, only a fraction of EBR’s debts will be paid off. It will be up to the new owner of EBR to reconcile the debts with the remaining creditors.

It’s is hard to envisage a company like Atlantic metals that specializes in architectural electrics and lighting is all of a sudden going to get into the motorcycle business and that to through the EBR brand. But only time will tell and we’re waiting to see what’s in store for us next.