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 Lima?s 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 Lima?s key European markets. Hornby intends to maintain Lima?s current product lines.

The bulk of the company?s assets are detailed product moulds; initially these will be moved to Hornby?s 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.?

Reply to
David Westerman
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I thought that Walthers had already bought Rivarossi.

Kevin

Reply to
Kevin

"Kevin" wrote

Myth! Walthers just have a marketing agreement with them.

John.

Reply to
John Turner

"David Westerman"

Let's not go too far.

-- Cheers Roger T.

Home of the Great Eastern Railway

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Reply to
Roger T.

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

Reply to
Just zis Guy, you know?

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.

Reply to
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

Reply to
mutley

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.

Reply to
MartinS

That's ok then! :-)

Reply to
Gregory Procter

Certainly does, as it will avoid some duplication of products (MkIII coaches and the Class 92 spring to mind as examples).

David E. Belcher

Reply to
David E. Belcher

Their best method of avoiding duplication would be to take _all_ the moulds so that no other firm would get the remainder at throw away prices.

Reply to
Gregory Procter

that no other firm would get

That would be a bit of hypocrisy on Hornby's part, seeing as they've made some good additions to their range thanks to old Airfix/Palitoy/Dapol moulds (don't know if they paid a knock-down price for the tooling, though)!

David E. Belcher

Reply to
David E. Belcher

Gregory Procter wrote:-

That is the only good use I can think for them either.

Will Hornby drop the Class 31 now they have access to the Lima variant?

(kim)

Reply to
kim

David E. Belcher wrote:-

That was a while ago. Hornby has moved on since then. The Class 50 has raised the bar for the whole industry.

(kim)

Reply to
kim

MkIII coaches eh, Hornby can now easily add a TGS to the range! This takeover may have been the reason why they never have bothered to make one so far...

DJO

Reply to
DJO

"kim" wrote

Why? They've virtually finished tooling the new model and pre-production samples are being featured in the current issue of REX amongst others.

In any event the old Lima 31 was very little better than the original Tri-ang tooling.

John.

Reply to
John Turner

so that no other firm would get

Hypocracy is the way of today's world, at least in corporate and political terms!

Regards, Greg.P. NZ

Reply to
Gregory Procter

A firm like Mehanotehna (apologies to M) or Playart or ... would be only too happy to get any remaining moulds at scrap metal prices and flood the market with every version from London, Birmingham and Manchester through Virgin/GNER at half Hornby prices. A cheapened J52 with an Italian and a Mk I coach all in GWR colours would make a great start set. ;-)

Reply to
Gregory Procter

John Turner wrote:-

In that case I can't see what possible advantage there is in Hornby acquiring Lima's tooling?

Bodyshell-wise you are correct. However the bogie sideframes are horrendous, I use them to practice my weathering technique. It is also at least possible to add a lighting kit and other details to the Lima model.

If the new Class 31 is even half as good as the Class 50 I'll buy it.

(kim)

Reply to
kim

No swearing on the NG please. ;-)

Reply to
ViP

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