Hornby has agreed to sell iconic slot car racing brand Scalextric for £20m to strengthen its balance sheet and refocus the business on its core brands.
The Margate-based toymaker has struck a deal with family-run investment firm Purbeck Capital Partners, which will acquire Scalextric and its associated intellectual property through a newly formed holding company, Scalextric Motorsports.
The transaction, which includes a mix of upfront and deferred payments, will see Hornby use the proceeds to reduce debt and invest in its remaining portfolio, including Airfix and its model railway operations. Hornby is the founder of Frasers Group, Mike Ashley.
First introduced in 1957 by inventor Fred Francis, Scalextric quickly became a staple in British toy cupboards, allowing families to race miniature cars on electric tracks at home. Production later moved to Hornby’s Margate factory, where the brand became synonymous with practical motorsport fun for generations.
Purbeck Capital is led by Mark Brown, the former chief executive of US spirits giant Sazerac, which owns brands including Southern Comfort and Fireball. The acquisition of Scalextric is Purbeck’s first deal.
Brown said the company was “honored and excited” to acquire such a storied British motorsport brand, describing Scalextric as a company that has been bringing families together for almost seven decades.
“As we look to the long-term future and Scalextric is now a family business, we are motivated by the opportunity to continue to provide families with competitive racing fun while expanding into new areas of motorsports,” he said. He added that the brand also has the opportunity to encourage physical play and hand-eye coordination at a time when many families are trying to balance screen time with real-world activities.
As part of the agreement, Brown will also take on the role of supporting Hornby with its wider strategic transformation plans. The aim is to create a group structure in which individual brands can operate more independently and profitably.
The disposal reflects Hornby’s ongoing efforts to stabilize its finances following a difficult period for the traditional toy sector, which has faced rising production costs, changing consumer habits and strong competition from digital entertainment.
With the divestment of Scalextric, Hornby is betting that a greater focus on its core modeling brands, combined with a stronger balance sheet, will position the almost century-old company for a more sustainable future, even as one of its best-known names begins a new chapter under separate ownership.
