Scalextric owner Hornby PLC (LSE:HRN) has swooped to buy a subscription club associated with its Corgi model cars brand for £0.6 million.
The company said it has purchased £400,000 of existing models and collectibles stock from the Corgi Model Club (CMC), paying a £200,000 consideration and a three-year earn-out to co-founder Jim Lewcock.
CMC, which was set up as a joint venture with Hornby in 2021, sells contemporary editions of classic Corgi models from the archives through a monthly subscription model.
It has grown active subscriber numbers to 6,000 since being founded, Hornby said, with the acquisition expected to add around £2 million of revenue at a 15% operating margin.
CMC's management will join Hornby too, with Guy Stainthorpe appointed as the brand managing director of Corgi.
Hornby chief executive Olly Raeburn 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."