Iconic Scalextric Brand Sold by Hornby to Purbeck Capital in £20 Million Deal
Toy manufacturing giant Hornby has finalised the sale of its nearly 70-year-old slot car racing brand Scalextric to family-run investment vehicle Purbeck Capital Partners for a total valuation of £20 million. The transaction, which includes both immediate and deferred payments, marks a significant shift for the Margate-based toymaker as it seeks to streamline operations.
Strategic Restructuring and New Ownership
The acquisition is led by Mark Brown, former chief executive of American spirits conglomerate Sazerac, which owns brands like Southern Comfort and Fireball. Brown has established a new holding company, Scalextric Motorsports, to oversee the marque, representing Purbeck Capital's first deal of this nature. This move is part of Hornby's broader strategic restructuring programme, with Brown committing to support the toymaker in developing a portfolio of independently profitable brands.
The £20 million sale will enable Hornby to reduce its borrowings and redirect funds into its other well-known brands, such as model railway sets and the model aircraft marque Airfix. Hornby, which is backed by billionaire Mike Ashley, founder of Frasers Group, continues to operate from its headquarters in Margate, where Scalextric manufacturing was relocated after its initial unveiling at a toy fair in Harrogate in 1957.
Future Plans for Scalextric
Mark Brown expressed enthusiasm for the acquisition, stating, "We are both honoured and thrilled to be acquiring such an iconic British motorsport brand, which has been bringing family and friends together for motor racing competition, excitement, and fun at home for nearly 70 years, spanning four generations." He emphasised Purbeck Capital's long-term vision for Scalextric as a family-owned company, with plans to expand into new areas of motorsport while maintaining its core appeal.
Brown highlighted the brand's potential to enhance physical and hand-eye coordination skills, particularly in an era where families are balancing online activities with real-world engagements. This acquisition aims to revitalise Scalextric's legacy, ensuring it remains a staple in competitive home racing and family entertainment for years to come.
The sale underscores ongoing trends in the toy industry, where established brands are being repositioned to adapt to modern consumer preferences. With Purbeck Capital's investment, Scalextric is poised for a new chapter, blending its rich history with innovative expansions in the motorsport arena.
