A proposed merger between two of Britain’s best-loved model manufacturers could create a new entity with combined revenues in excess of £50 million.
According to a report in City A.M., Hornby, which is best known for its model railways, Scalextric and Airfix brands, is in the final throes of thrashing out a deal with fellow British model maker Oxford Diecast.
The news comes shortly after Hornby officially appointed Lyndon Davies, Founder of Oxford Diecast, as its new Chief Executive in recent days.
Immediately following the announcement, shares in Hornby jumped by more than four per cent as rumours of an upcoming tie-up began to surface.
Shortly afterwards, a Hornby spokesperson announced that the group was “exploring the opportunity to invest in” Oxford Diecast.
“Further information will be released in due course,” they said on Tuesday morning.
According to various sources, the duo are anticipating a tie-up which would pave the way for a new £50 million a year entity.
The rumours come not long after Oxford Diecast expanded its range, moving away from model cars and towards model railways and many of the other products traditionally offered by then-rival Hornby.
According to reports, Hornby is currently working through a “financial and operational turnaround strategy.”
David Adams, Interim Chairman at the group, said that the company was delighted to have Oxford Diecast founder Lyndon Davies on board.
“I am delighted to welcome Lyndon to the board. His obvious expertise in and enthusiasm for the toy and hobby industry will provide the group with experienced leadership for the next stage of our development.
“Hornby will continue with its turnaround plan and Lyndon is ideally qualified to steer the group through this period.”
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