Hornby PLC - Margate, England-based model railway maker and retailer - Buys Corgi Model Club from Blue 14, an investment vehicle majority owned by entrepreneur Jim Lewcock. Corgi toys are die-cast metal models of cars, trucks, buses and planes. They first appeared in 1956, and the brand was purchased by Hornby in 2008. Corgi Model Club was formed in 2021 as a partnership with Hornby. It creates and sells contemporary editions of classic Corgi models to collectors on a monthly subscription. It has 6,000 active subscribers. Hornby will pay GBP400,000 for CMC's existing stock of Corgi models, plus additional consideration of GBP200,000. The deal will add about GBP2 million in annual revenue at a 15% operation margin to Hornby, it says. An earn-out is payable to Lewcock based on CMC's profitability over three years from the acquisition.
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By Tom Waite, Alliance News editor
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Hornby (HRN)