Hornby has agreed to sell the iconic slot car 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 toy maker has struck a deal with family-owned investment vehicle 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 backed by Frasers Group founder Mike Ashley.
Scalextric was first introduced in 1957 by inventor Fred Francis and quickly became a staple of British toy cupboards, allowing families to race miniature cars around electric tracks at home. Production was later 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, the former chief executive of US spirits giant Sazerac, which owns brands such as Southern Comfort and Fireball. The Scalextric acquisition marks Purbeck’s first deal.
Brown said the firm was “honoured and thrilled” to acquire such a long-standing British motorsport brand, describing Scalextric as a business that has brought families together for nearly seven decades.
“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,” he said. He added that the brand also has scope to promote physical play and hand-eye coordination at a time when many families are seeking to balance screen time with real-world activities.
As part of the agreement, Brown will also take on a role 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 stabilise its finances after a challenging period for the traditional toy sector, which has faced rising input costs, changing consumer habits and intense competition from digital entertainment.
By divesting Scalextric, Hornby is betting that a sharper focus on its core modelling brands, combined with a stronger balance sheet, will position the near century-old business for a more sustainable future, even as one of its most recognisable names embarks on a new chapter under separate ownership.
