Hornby sells iconic British slot-car brand Scalextric for £20m

The nearly 70-year-old racing toy brand, a staple of British childhoods since 1957, is being sold by Hornby to a new investment vehicle backed by Purbeck Capital Partners’ Mark Brown

Scalextric, the slot-car racing brand that has been part of British living rooms for almost seven decades, is being sold for £20 million.

Hornby Hobbies has agreed to sell 100 per cent of the Scalextric business — including its intellectual property and associated assets — to Scalextric Motorsports, a newly formed company established by Mark Brown, president and chief executive of family-owned investment vehicle Purbeck Capital Partners.

Under the terms of the deal, £8.5 million will be paid upfront in cash, with a further £11.5 million deferred and payable out of free cash flow. Completion is subject to certain consents and is expected in early March. The proceeds will reportedly be used by Hornby to reduce debt and invest in its remaining brands.

First introduced at a toy fair in Harrogate in 1957 by inventor Fred Francis, Scalextric went on to become one of Britain’s most recognisable toy brands. Generations of children — and adults — have raced its miniature cars around looping tracks, with production later centred in Margate, where Hornby remains based.

Hornby, which is backed by Frasers founder Mike Ashley, also owns model aircraft brand Airfix and produces model railways. Following completion, Hornby will continue to manage the Scalextric business as agent within its existing infrastructure, ensuring operational continuity as ownership transfers.

Richard Brown, chief executive of Castelnau Group, Hornby’s parent company, said:”Scalextric has made significant progress in recent years, and we are truly excited for its next phase. Mark has an outstanding track record of building global brands and has a clear and exciting vision for its future. 

“We look forward to working closely with him going forward on the wider transformation at Hornby. This transaction is consistent with Castelnau’s strategic intention to ensure that our businesses are owned and led by the best owners to deliver their full potential.”

Olly Raeburn, chief executive of Hornby Hobbies, added: “This is a hugely exciting development for the Scalextric brand, which builds on encouraging progress over the last couple of years. 

“Mark’s leadership will bring enormous experience, energy and enthusiasm to the business and we look forward to supporting the execution of his vision and strategy. We have enjoyed working with him to get this transaction over the line and are now focused on converting all of the positive discussions into reality and growth for Scalextric.”

As part of the agreement, Mr Brown has committed to supporting Hornby’s wider strategic transformation, with the aim of building a portfolio of profitable brands operating independently.

Mark Brown, on behalf of Scalextric Motorsports, said: “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. 

“As we look to a long-term future, with Scalextric as a now family-owned company, we are energised by the opportunity to continue bringing competitive racing fun to families, while expanding into new areas of motorsport and helping to build physical and hand-eye coordination skills, particularly at a time when families are trying to balance time spent online versus real world activities.”

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