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Hornby Plc announced on March 11, 2024, the acquisition of the assets, trade, and intellectual property of The Corgi Model Club (CMC) from Blue 14, an investment vehicle majority-owned by Jim Lewcock. The acquisition involved Hornby purchasing £400,000 of existing stock and an additional consideration of approximately £200,000. CMC contributes approximately £2 million in revenue at a 15% operating margin and more than 6,000 active subscribers, with Guy Stainthorpe appointed as Brand MD of Corgi.
| Date | 11 Mar 2024 |
| Time | 07:00:03 |
| Category | Acquisitions and alliances |
| ID | 2234G |
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