Acquisition

1 Sep 2006 07:00

Hornby PLC01 September 2006 HORNBY ACQUIRES GERMAN DISTRIBUTION GROUP Hornby Plc ("Hornby"), the international models and collectibles group, hasannounced that it has acquired the assets and certain liabilities of HeicoModell, a privately owned distributor of model railway accessories in Germany. Heico is a well known brand in the German model railway market and has over1,200 active customer accounts with independent retailers throughout Germany.Its products include track-side buildings and a range of accessories for modelrailway wagons. The business was founded in 1996 and has built up a network teamof 13 field sales agents who operate throughout the country. Hornby intends to use Heico to strengthen its penetration of the German modelrailway market. The business will be re-named Hornby Deutschland GmbH and willalso act as distributor for the Group's Lima, Arnold and Rivarossi products,alongside its existing extensive range of model accessories. The business has been acquired for a nominal sum, but Hornby will be taking onnet liabilities of approximately €200,000. Frank Martin, Chief Executive of Hornby commented, " The acquisition of Heico is a really important step in the development of ourstrategy to expand in Germany. The model railway market in Germany is thebiggest in Europe and is estimated to be six times larger than the UK market. Webelieve that the market offers huge potential for growth as we launch newproduct into the market. " We are pleased that the existing management team of Heico are staying with us.In turn they are excited by the prospect of working with our portfolio ofbrands, which we are working hard to re-invigorate since the acquisition of theLima operations. In particular our brands Arnold and Rivarossi are well known inthe German market. " Our strategy to establish a global model railway and slot racing business iswell advanced and this is a vital move that will enable us to grow in Germany.We are confident that we will be able to take advantage of the existingdistribution network and increase significantly the volumes of product that wesell in Germany." -ends- Date: 1 September 2006 For further information contact: Hornby Plc cityPROFILEFrank Martin, Chief Executive Simon CourtenayJohn Stansfield, Finance Director 020-7448-324401843-233500Web: www.hornby.com or: www.scalextric.com-------------------------------------------- This information is provided by RNS The company news service from the London Stock Exchange