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- It has paid £400,000 for CMC’s existing stock.
- This stock will be sold directly to Hornby customers.
- There will also be additional consideration of around £200,000.
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Hornby purchased the intellectual property, brand and trade of Corgi Model Club from Blue 14, an investment vehicle majority owned by businessman Jim Lewcock.
The deal will value Corgi Model Club, which sells reissued toy car models and was set up as a third-party partnership with Hornby in 2021, at up to £600,000.
Model train maker Hornby told investors on Thursday it paid £400,000 for existing CMC stock, which it will sell directly to Hornby customers in the future, pending additional consideration of around £200,000.
The purchase of the British model railway manufacturer will be worth a total of £600,000.
The Kent-based firm said the deal will generate £2 million of annual revenue with a 15 per cent operating margin, as well as 6,000 active customers.
CMC’s management will join Hornby and Guy Stainthorpe will be appointed Corgi’s chief brand officer.
CMC was created in 2021 to sell contemporary editions of classic Corgi models from the archives through a monthly subscription model.
Olly Raeburn, chief executive of Hornby, said: “Adding the Corgi Model Club subscription proposition to the Hornby business makes great sense and we anticipate driving further growth both domestically and internationally in the coming months and years.”
‘In addition, the immediate addition of over 6,000 die-hard Corgi collectors represents a great opportunity to create additional value in the parent Corgi brand. “This is an exciting development for both Corgi and the Hornby business as a whole.”
Guy Stainthorpe, CEO of CMC, added: “Advancing 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.”
In January, the company said sales rose 5 percent between Oct. 1 and Dec. 31 compared with the same period a year earlier.
The group’s cumulative sales for the financial year to date were 6 per cent higher than the previous year.
The group said strong Black Friday sales contributed to revenue growth of 10 percent compared to November the previous year. More than 50 percent of all Black Friday transactions came from first-time buyers.
Horny actions They rose 0.50 per cent to 33.67 pence in afternoon trading on Monday.
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