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HORNBY BUYS CORGI
Corgi Classics has been acquired by the international models and
collectables group Hornby Plc for £7.5 million
With no Corgi models released in the first quarter of this year
and rumours of severe financial difficulties rife, there has been
much concern and speculation about the fate of Britain’s
best-known die-cast manufacturer.
Now Hornby has stepped in and agreed to buy the brand, tooling
and intellectual property rights from Corgi International Limited
for £7.5 million, they will also be paying an additional
£0.8 million for the existing inventory.
Hornby states it will focus on managing the business for growth.
Key existing marketing, sales and development personnel will be
retained, whilst currently outsourced logistics will be integrated
into the Hornby structure, along with sales administration, finance
and operations. Hornby plan to strengthen the product range and
improve the marketing and distribution support.
This is not the first time Hornby has come to the rescue of the
hobby’s heritage. Last year, it took on the iconic plastic
modelling brand Airfix, when its parent company was forced into
administration, keeping the household name kits alive and healthy
for future generations to enjoy.
The Corgi product range is of course highly complementary to Hornby’s
existing hobby brands, which include Hornby, Lima, Jouef and Rivaross
in model railways, Scalextric slot car racers, Humbrol paints
and of course the aforementioned Airfix kits.
“We have set in place a detailed integration plan
to ensure that we improve Corgi’s performance rapidly”
As part of the Corgi package, Hornby is also acquiring Bassett-Lowke,
an O gauge model railway brand that operates at the top end of
the market and will, of course, sit perfectly in Hornby’s
existing model railway portfolio.
Expressing his views, Hornby’s CEO Frank Martin states:
“We are delighted to announce the acquisition of Corgi.
It’s a fantastic brand and has a superb reputation worldwide.
We intend to build on the brand’s super heritage and invest
to ensure its premier position in the market. The strategic fit
with our existing business could not be better. We are confident
that we will grow the scale of the business rapidly and drive
it forward.
The team at Hornby has the expertise and a successful track record
in managing a portfolio of famous hobby sector brands that have
flourished under our stewardship. This team will be complemented
by the expertise of Corgi employees, who will be transferring
to Hornby. Together we have set in place a detailed integration
plan to ensure that we improve Corgi’s performance rapidly.
We will focus on product innovation, improving the distribution
network and driving sales growth both in the UK and internationally.
This acquisition is an extension of the Group’s strategy
to build an international hobby and collectibles business with
a broad range of brands. Looking to the future, we are extremely
excited by the potential growth that Corgi can deliver.”
Denis Horton, Corgi’s MD explained the decision to sell
the die-cast side of the business by making the following statement:
“It’s no secret that Corgi has had problems, and this
has resulted in the recent delays in product flow. To ensure liquidity
in a tough market period, we feel it’s the right time to
concentrate our focus on the pop culture side of the business.
We believe that the Corgi brand will be in good hands with Hornby
and that they’ll keep the rich tradition of the brand prospering.”
We believe this news will be well received by all. The past few
months has been highly unsettling for both collectors and the
industry in general and we think there’ll be a big sigh
of relief that the matter has finally been resolved with a positive
outcome. In fact Hornby seem to be going from strength, having
announced a 37% increase in turnover earlier this year, with pre-tax
profits up to £2.6 million. So it looks like the brand is
in very good hands and that the future of our hobby once again
looks bright! |
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