A company famous for its model railways has diversified its portfolio after it completed a seven-figure acquisition.

A company famous for its model railways has diversified its portfolio after it completed a seven-figure acquisition.

Hornby plc has bought die-cast model specialist Corgi Classics, which produces collectible trucks, buses, cars and aeroplanes.

The company’s brand, tooling and intellectual property were bought from Corgi International in a debt-funded £7.5 million cash deal. The transaction adds the Batmobile, the Lotus John Player Special Formula 1 car and James Bond’s Aston Martin DB5 to Hornby’s portfolio.

The deal also strengthens Hornby’s model railway portfolio with the terms of the agreement, including the acquisition of Bassett-Lowke, which operates at the top end of the model railway market.

Hornby’s chief executive Frank Martin said he already has a plan to improve Corgi’s performance. “This acquisition is an extension of the group’s strategy to build an international hobby and collectibles business through a range of brands. We are excited by Corgi’s growth potential.”

The acquirer intends to grow Corgi’s product range and improve its marketing and distribution network to drive sales internationally.

Hornby’s brands include model railways such as Lima, Jouef and Rivarossi. It also owns Scalextric racing cars, Airfix models and Humbrol paints.

Corgi was established by the Mettoy Company in Northampton and introduced die-cast models to its range in 1956. Its products are sold in the UK, the US and northern Europe and generated sales of some £6.5 million in the year to April 2008.