(Sharecast News) - Models and collectibles business Hornby said on Monday that it has acquired The Corgi Model Club from Blue 14, an investment vehicle majority-owned by entrepreneur Jim Lewcock.
Hornby stated that through the purchase of £400,000 worth of existing stock from CMC, which will be sold directly to customers in the future, and an additional consideration of roughly £200,000, it was adding approximately £2.0m of revenue at a 15% operating margin and more than 6,000 active subscribers.
The AIM-listed group noted that a performance-related earnout has been put in place for Guy Stainthorpe, who will be appointed as brand MD of The Corgi Model Club, payable based on the future profitability of both CMC and the wider Corgi business over the next three years.
Chief executive Olly Raeburn said: "Bringing the Corgi Model Club subscription proposition into the Hornby business makes complete sense and we anticipate driving further growth both domestically and internationally over the coming months and years. Furthermore, the immediate addition of over 6,000 die-hard Corgi collectors represents a great opportunity for creating additional value in the Corgi mother brand. This is an exciting development both for Corgi and for the Hornby business overall."
As of 1200 GMT, Hornby shares were untraded at 5.50p.
Reporting by Iain Gilbert at Sharecast.com
Hornby (HRN)