11 March
2024
Hornby Plc
("Hornby" or the
"Group")
HORNBY PLC ACQUIRES THE CORGI MODEL
CLUB
Hornby Plc ("Hornby"), the international models
and collectibles Group, announces the acquisition of the assets,
trade and intellectual property of The Corgi Model Club ("CMC")
from Blue 14, an investment vehicle majority-owned by entrepreneur
Jim Lewcock. The management of CMC is joining Hornby, with
Guy Stainthorpe appointed as the Brand MD of Corgi.
CMC was established in 2021 as a third party
partnership with Hornby, creating and selling contemporary editions
of classic Corgi Models from the archives through a monthly
subscription model, and has grown significantly since
then.
Through the purchase of £400,000 of existing
stock from CMC, which will be sold directly to Hornby customers in
the future, and an additional consideration of c. £200,000, Hornby
is adding c.£2M of revenue at a 15% operating margin and more than
6,000 active subscribers. A performance-related earnout has been
put in place for Guy, payable based on the future profitability of
both CMC and the wider Corgi business over the next three years. An
earn out is payable to Jim based on profitability of CMC over 3
years from acquisition.
Olly Raeburn,
CEO of Hornby, 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."
Guy
Stainthorpe, MD of CMC, said: "Galvanising our
long term partnership with Hornby in this way is a hugely positive
development for CMC and provides us with a fantastic opportunity to
further develop a successful and growing business. We look forward
to joining Hornby and working alongside Olly and the
team."
Enquiries:
Hornby
PLC
Olly Raeburn, CEO
01843 233
500
Kirstie Gould, CFO
Holly Barnett PR
Liberum
Capital Limited, Nominated Advisor and Broker
Andrew Godber
020 3100 2222
Edward Thomas
Anake Sing