Hornby Acquisition of Lima Now Approved

     From the Hornby Plc Website
Story Posted: 05/10/2004
Hornby Plc, the model and collectables group, is pleased to announce
that the Court of Brescia in Italy has signed a decree which allows the Liquidators of Lima S.p.a. to accept Hornby's offer of 8 million to acquire certain assets of Lima.
The Hornby Board is confident that the acquisition will be completed by the end of the calendar year.
Lima is one of the best-known model railway companies in Europe.
However, given the high cost overhead associated with its European based manufacturing operations, the company has suffered recently from poor cash flow and was forced into liquidation in 2003.
The Hornby Board is confident that it has the skills and experience to re-invigorate Limas brands. This will be achieved by reducing production costs by outsourcing production to China and concentrating on improving sales and distribution channels to ensure a recovery in sales of Limas key European markets. Hornby intends to maintain Limas current product lines.
The bulk of the companys assets are detailed product moulds; initially these will be moved to Hornbys site in Margate before dispatch to China. Hornby has implemented this outsourcing strategy successfully with its own Hornby and Scalextric brands.
The acquisition represents a major opportunity for Hornby to continue its growth in key European markets. Lima has a strong range of brands:
Lima/Rivarossi - brand leaders in Italy Jouef - brand leader in France Arnold - 'N' gauge products (predominantly German) Pocher - high-end diecast collectable kits
In addition to the European opportunity, Rivarossi is recognised as a premium brand in the USA.
Chief Executive of Hornby, Frank Martin, said: "We are delighted that the Italian Court has recognised the merits of our offer. Now, subject to our due diligence, we hope to complete the acquisition before the end of the year. We are excited by the potential for the Lima brands, which alongside our Spanish operation Electrotren, will form the platform for our expansion into key European markets. Over the long-term we are confident that this will also increase our rate of growth in the USA.          
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I thought that Walthers had already bought Rivarossi.
Kevin
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"Kevin" wrote

Myth! Walthers just have a marketing agreement with them.
John.
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"David Westerman"

Let's not go too far.
-- Cheers Roger T.
Home of the Great Eastern Railway http://www.highspeedplus.com/~rogertra /
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Actually, maybe we should translate "premium" out of marketing-speak into English. The English word for "premium" is "expensive".
--
John Sullivan
OO in the garden http://www.yddraiggoch.demon.co.uk/railway/railway.html
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John Sullivan wrote:

Ohh, I thought US "Premium" meant normal, everyday, average, cooking products in english.
Regards, Greg.P.
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Yes, these days "Premium" has come to mean cheap and nasty - decent stuff has to be "Mega", "Ultra", "Platinum" or some such.
--
Martin S.

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MartinS wrote:

The "Rolls Royce of ..." :-(
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Or, for patriotic Americans, "The Cadillac of ..."
--
Martin S.

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MartinS wrote:

Didn't they die with Elvis?
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Gregory Procter wrote:

Elvis is dead?
Ronnie -- Volunteer guard on the Great Central Railway, Loughborough, Leicestershire Visit the world's only double track preserved steam railway! http://www.gcrailway.co.uk
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Ronnie Clark wrote:

He was supposed to be coming to my local supermarket but he didn't turn up!
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Not according to my computer at work:
ping Elvis Elvis is alive
:-)
--
John Sullivan
OO in the garden http://www.yddraiggoch.demon.co.uk/railway/railway.html
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No but there sales dropped drastically. Graeme Hearn
wrote:

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Graeme Hearn:

But didn't that coincide with a swing away from gas guzzlers and the introduction by General Motors of a an all-new 'small' Cadillac "Seville"?
(kim)
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snipped-for-privacy@aol.com (kim) wrote:

The Cadillac marque is still alive and well and producing gas guzzlers, including the Escalade SUV. It weighs almost 3 tons and has a 345HP 6L V8 engine.
http://www.cadillac.com/cadillacjsp/models/gallery.jsp?model=escalade&df=y
--
Martin S.

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On Tue, 05 Oct 2004 11:22:40 +0100, David Westerman

Well, that sounds encouraging. I know we don't all have a terribly high opinion of Lima, but I think Hornby are to be praised for the quality of some of their more recent models. Hopefully this will increase the range of models available at non-specialist shops.
Guy
--
May contain traces of irony. Contents liable to settle after posting.
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"Just zis Guy, you know?" wrote:

This line bothers me a little: "... to acquire certain assets of Lima." Does this just mean that Hornby is only buying what they want, or does it perhaps mean that certain model(s) or lines have gone elsewhere? I can imagine for example that those huge Pocher car kits might not be Hornby's cup of tea and perhaps Jouef's toy and car ranges would be attractive elsewhere.
regards, Greg.P.
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On Wed, 06 Oct 2004 08:25:47 +1300, Gregory Procter

Basically it means it gets the range of models produced by the Lima group, but doesn't get the buildings, land, vehicles etc.
Pete
--
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It's been stated previously that Hornby was very selective as to what it wanted to cherry-pick from the remains of Lima, which makes sense.
--
Martin S.

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