Hornby has bought miniature vehicle maker Corgi for £8.3m. The toymaker is paying £7.5m to Corgi International Limited for its brand, tools and licensing rights and an additional £800,000 for its stock of cars, lorries, buses and aeroplanes.
Hornby will also acquire model railway brand Bassett-Lowke as part of the deal. Corgi’s marketing, sales and development teams will be retained and Hornby hopes to “further strengthen” the brand’s product range.
Hornby chief executive Frank Martin says: “The strategic fit with our existing businesses could not be better. We are confident that we will grow the scale of our business rapidly and drive it forward.”
Martin says the brand will now focus on the younger end of the market and set up more licensing deals in order to grow Corgi’s sales.
He adds: “This acquisition is an extension of the group’s strategy to build an international hobby and collectables business with a broad range of brands.”