Hornby has agreed to sell historic motor racing brand Scalextric for £20 million in a move designed to strengthen its balance sheet and refocus the business on its core brands.
The Margate-based toymaker has struck a deal with family-owned investment vehicle Purbeck Capital Partners, which will buy Scalextric and related intellectual property through a newly formed company, Scalextric Motorsports.
The deal, 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 train operations. Hornby is backed by Frasers Group founder Mike Ashley.
Scalextric was first introduced in 1957 by founder Fred Francis and quickly became a staple of Britain’s toy cupboards, allowing families to race miniature cars around electric tracks at home. Production was then moved to Hornby’s Margate factory, where the brand became synonymous with hands-on motorsport fun for generations.
Purbeck Capital is led by Mark Brown, former chief executive of US spirits giant Sazerac, which owns brands such as Southern Comfort and Fireball. The acquisition of Scalextric marks Purbeck’s first deal.
Brown said the company was “honoured and delighted” to acquire the long-standing British car brand, describing Scalextric as a family-run business for almost seven decades.
“As we look to the long-term future, with Scalextric now a family-owned company, we are excited by the opportunity to continue to bring the fun of racing to families, while entering new areas of motoring,” he said. He added that the brand also has an opportunity to encourage physical play and interaction at a time when many families want to balance screen time with real-world activities.
As part of the deal, Brown will also play a role in supporting Hornby with its wider transformation plans. The aim is to create a group structure where individual brands can operate independently and profitably.
The disposal reflects Hornby’s continued efforts to stabilize its finances after a challenging period for the traditional toy sector, which has faced rising input costs, changing consumer habits and increased competition from digital entertainment.
By splitting Scalextric, Hornby is betting that a sharp focus on its core models, combined with a strong balance sheet, will position the business for a near-century sustainable future, as one of the most famous names begins a new chapter under different ownership.
