Hornby Plc, the international models and collectibles group, has today announced that it has acquired the famous die-cast model business Corgi Classics.

Corgi is one of the oldest manufacturers of collectible die-cast models of trucks, buses, cars and aeroplanes in the world. Currently, its principal markets are the United Kingdom, the United States and Northern Europe.

Hornby has agreed to buy the brand, tooling, and intellectual property rights from Corgi International Limited, for a consideration of £7.5 million. In addition, existing inventory will be acquired for a consideration of c. £0.8 million.

Hornby 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. It plans to strengthen the product range and improve the marketing and distribution support. In the first year after the acquisition, Corgi is expected to be earnings neutral.

The Corgi product range is highly complementary to Hornby’s existing hobby brands, which include Hornby, Lima, Jouef and Rivarossi in model railways, Scalextric slot car racing cars, Airfix models and Humbrol paints. .

As part of the acquisition, Hornby is also acquiring Bassett-Lowke, an ‘O’ gauge model railway brand. Bassett-Lowke operates at the top end of the model railway market and will add another range of products that compliments Hornby’s existing model railway portfolio.

Frank Martin, Chief Executive of Hornby commented, “We are delighted to announce the acquisition of Corgi. It is a fantastic brand and has a superb reputation worldwide. The strategic fit with our existing businesses could not be better. We are confident that we will grow the scale of the business rapidly and drive it forward. We will focus on product innovation, improving the distribution network and driving sales growth both in the UK and Internationally. “

Denis Horton – Corgi Managing Director said: “The sale of the Corgi die cast collector business will allow us to focus on our key licenses (Harry Potter, Nintendo, Beatles, James Bond, Disney, Star Trek, Halo) and two, strong Pop Culture brands (PopCo and Master Replicas) that concentrate on the younger consumer and retailers that cater for the younger gateway collector. We felt it was the right time to ensure liquidity in a tough market period and to focus on the customer who is dedicated to POP Culture. We believe that Corgi brand will be in good hands with Hornby and they will keep the rich tradition of the brand prospering."