Toymaker Hornby has bought Corgi Classics for £7.5 million, adding an iconic hobby brand known for its die-cast metal models of vehicles such as James Bond's Aston Martin DB5.
Hornby is buying Corgi's brand, tooling and intellectual-property rights from Corgi International. In a statement today the English toymaker said it would fund the cash acquisition with its own banking facilities.
The purchase gives Hornby, the largest UK maker of model-railway gear, another brand to complement its Scalextric model slot-car racers and Humbrol paints.
Hornby said it aims to improve Corgi's product range and marketing to spur sales.
“Corgi model vehicles captured the imagination of millions of baby boomers and are now highly sought-after in the expanding collectible market,” Frank Martin, Hornby's chief executive officer, said in the statement. “It is a fantastic brand and has a superb reputation.”
The takeover will not affect Hornby's earnings in the current fiscal year ending next March, the statement shows. Corgi Classics had sales of £6.5 million in the year through last month, according to the statement, though Hong Kong-based Corgi International did not break out the unit's profit.
Hornby rose 1 penny, or 0.6 per cent, to 164 pence at 8.15am in London trading. The stock has dropped 31 per cent this year after sliding 13 per cent in 2007.