Rivarossi

[nfmisso]

QUOTE: Originally posted by bigboy4015
[br
...It´s possible that Walthers is owner of the USA assortment and use the brand for this plus the exclusive Allegheny! Rivarossi USA models are exclusive Walthers

Not, Walthers did not own anything in this case, they just contracted with Rivarossi for the models. The contract will not survive the bankruptcy proceedings - 'concordato preventivo'.

If Hornby is successful, Walthers will have to deal with them to continue the line.

[nfmisso]

QUOTE: Originally posted by darth9x9

Well, whoever retools/re-releases Rivarossi stuff, they will have to replace the pizza cutters with wheels and flanges that don't ride on the ties in order to compete successfully.

Those are long gone, and all the recent USA bound Rivarossi have .110" tread width RP25 wheels.

[nfmisso]

QUOTE: Originally posted by darth9x9

Well, whoever retools/re-releases Rivarossi stuff, they will have to replace the pizza cutters with wheels and flanges that don't ride on the ties in order to compete successfully.

Those are long gone, and all the recent USA bound Rivarossi have .110" tread width RP25 wheels.

[Anonymous]

QUOTE: Originally posted by M636C

While not completely relevant, I dropped into my local hobby shop earlier this week, and they had the Lionel Challenger sitting quite close to the Rivarossi product. Now the Lionel was priced about three times the price of the Rivarossi, but the valve gear, particularly, looked a lot better!

Has the latest Rivarossi improved up to the Lionel standard? The prices here are about $A450 for Rivarossi and $A1267 for Lionel, ($A1=$US0.73 tonight)

Peter

I have the latest edition of the Rivarossi Challenger 3985 - Yeah the valve gear looks better!

I placed two orders for the Genesis Challenger at my HS (couldn´t say LHS because the shop is 140 km away).

And I think that the cheaper Genesis will be the better opinion - Athearn starts an unbelievable exact detailing with the coming Genesis SD70MAC. And the Challenger will be the same!
Im sure that the decision was right since i notice this mistake with Lionels Gasturbine #73 - wrong airintake!

[Anonymous]

QUOTE: Originally posted by M636C

While not completely relevant, I dropped into my local hobby shop earlier this week, and they had the Lionel Challenger sitting quite close to the Rivarossi product. Now the Lionel was priced about three times the price of the Rivarossi, but the valve gear, particularly, looked a lot better!

Has the latest Rivarossi improved up to the Lionel standard? The prices here are about $A450 for Rivarossi and $A1267 for Lionel, ($A1=$US0.73 tonight)

Peter

I have the latest edition of the Rivarossi Challenger 3985 - Yeah the valve gear looks better!

I placed two orders for the Genesis Challenger at my HS (couldn´t say LHS because the shop is 140 km away).

And I think that the cheaper Genesis will be the better opinion - Athearn starts an unbelievable exact detailing with the coming Genesis SD70MAC. And the Challenger will be the same!
Im sure that the decision was right since i notice this mistake with Lionels Gasturbine #73 - wrong airintake!

[lupo]

Ulrich,
you are right, it is on the bottom, did not turn it over, just looked inside ,and the yellow inspection slips were allso inside !
Lupo

[lupo]

Ulrich,
you are right, it is on the bottom, did not turn it over, just looked inside ,and the yellow inspection slips were allso inside !
Lupo

[M636C]

While not completely relevant, I dropped into my local hobby shop earlier this week, and they had the Lionel Challenger sitting quite close to the Rivarossi product. Now the Lionel was priced about three times the price of the Rivarossi, but the valve gear, particularly, looked a lot better!

Has the latest Rivarossi improved up to the Lionel standard? The prices here are about $A450 for Rivarossi and $A1267 for Lionel, ($A1=$US0.73 tonight)

Peter

[M636C]

While not completely relevant, I dropped into my local hobby shop earlier this week, and they had the Lionel Challenger sitting quite close to the Rivarossi product. Now the Lionel was priced about three times the price of the Rivarossi, but the valve gear, particularly, looked a lot better!

Has the latest Rivarossi improved up to the Lionel standard? The prices here are about $A450 for Rivarossi and $A1267 for Lionel, ($A1=$US0.73 tonight)

Peter

[Anonymous]

QUOTE: Originally posted by lupo

Bigboy4015,
I looked over my FEF's and could not find "made in italy", just on all papers was "Printed in Italy "
And talking Big Trouble: the Introduction of the new FEF's was at least troubled, I placed an advanced reservation Januari 2003, for shipping early March 2003, but that date kept changing allmost every week, a big advertising campaign in MR magazine somewhere in September or Oktober, still no FEF's available, just the twotone by the end of November
Then early januari 2004 they really were delivered. a year after the first announcements

Hi Lupo,

turn the box at the red rear of the bottom is printed in white "Made in Italy". It´s a box, to big for calling carton !!!

You have also this little notes inside? One is in the bax with the wheelset and one in the foam.

[Anonymous]

QUOTE: Originally posted by lupo

Bigboy4015,
I looked over my FEF's and could not find "made in italy", just on all papers was "Printed in Italy "
And talking Big Trouble: the Introduction of the new FEF's was at least troubled, I placed an advanced reservation Januari 2003, for shipping early March 2003, but that date kept changing allmost every week, a big advertising campaign in MR magazine somewhere in September or Oktober, still no FEF's available, just the twotone by the end of November
Then early januari 2004 they really were delivered. a year after the first announcements

Hi Lupo,

turn the box at the red rear of the bottom is printed in white "Made in Italy". It´s a box, to big for calling carton !!!

You have also this little notes inside? One is in the bax with the wheelset and one in the foam.

[lupo]

Bigboy4015,
I looked over my FEF's and could not find "made in italy", just on all papers was "Printed in Italy "
And talking Big Trouble: the Introduction of the new FEF's was at least troubled, I placed an advanced reservation Januari 2003, for shipping early March 2003, but that date kept changing allmost every week, a big advertising campaign in MR magazine somewhere in September or Oktober, still no FEF's available, just the twotone by the end of November
Then early januari 2004 they really were delivered. a year after the first announcements

[lupo]

Bigboy4015,
I looked over my FEF's and could not find "made in italy", just on all papers was "Printed in Italy "
And talking Big Trouble: the Introduction of the new FEF's was at least troubled, I placed an advanced reservation Januari 2003, for shipping early March 2003, but that date kept changing allmost every week, a big advertising campaign in MR magazine somewhere in September or Oktober, still no FEF's available, just the twotone by the end of November
Then early januari 2004 they really were delivered. a year after the first announcements

[Anonymous]

[?][?][?][?] [;)][;)][;)][;)]

Will Hornby become the complete Rivarossi assortment when this happens?

I´m not shure! It´s possible that Walthers is owner of the USA assortment and use the brand for this plus the exclusive Allegheny! Rivarossi USA models are exclusive Walthers

I ordered both UP excursion train sets, some additional UP cars and a FEF-3. I get all I ordered! Good for me.

Everything looks like the "good" (JOKE[:D]) old Rivarossi models, no the improvents are great - NO JOKE. Then I looked for the cartons:
The cars were made in China, this is official printed at the cartons. Three weeks after the cars I get the FEF-3 - Printed is "Made in Italy"!
Everything is okay, works well, runs great. Inside I found two little orange notes of paper. Quality control notes!

He´s crazy! What´so important with this notes, you ask?

In the first nothing but absolute the same notes use..............ROCO !!!!!!

Now you understand that I was surprised !

And my dealer told me that in the customs declaration was written that the models were made in China!!!!!!

[Anonymous]

[?][?][?][?] [;)][;)][;)][;)]

Will Hornby become the complete Rivarossi assortment when this happens?

I´m not shure! It´s possible that Walthers is owner of the USA assortment and use the brand for this plus the exclusive Allegheny! Rivarossi USA models are exclusive Walthers

I ordered both UP excursion train sets, some additional UP cars and a FEF-3. I get all I ordered! Good for me.

Everything looks like the "good" (JOKE[:D]) old Rivarossi models, no the improvents are great - NO JOKE. Then I looked for the cartons:
The cars were made in China, this is official printed at the cartons. Three weeks after the cars I get the FEF-3 - Printed is "Made in Italy"!
Everything is okay, works well, runs great. Inside I found two little orange notes of paper. Quality control notes!

He´s crazy! What´so important with this notes, you ask?

In the first nothing but absolute the same notes use..............ROCO !!!!!!

Now you understand that I was surprised !

And my dealer told me that in the customs declaration was written that the models were made in China!!!!!!

[Anonymous]

QUOTE: Originally posted by AntonioFP45

Sorry to hear.

IMHO, Rivorossi made some excellent HO passenger cars.

The HWs were cheap thru modelexpo, had about 10 cars.

[Anonymous]

QUOTE: Originally posted by AntonioFP45

Sorry to hear.

IMHO, Rivorossi made some excellent HO passenger cars.

The HWs were cheap thru modelexpo, had about 10 cars.

[AntonioFP45]

Sorry to hear.

IMHO, Rivorossi made some excellent HO passenger cars. While some of us knit pick that they weren't 100% accurate, they look great and are relatively easy to modify. Rivorossi still lives on through the Walther's line, though the new tooling has made the cars "Outstanding". Prices are not too bad as you can get a lot of the Walther's cars for $20 to $24 on the internet instead of the LHS $34 price.

[AntonioFP45]

Sorry to hear.

IMHO, Rivorossi made some excellent HO passenger cars. While some of us knit pick that they weren't 100% accurate, they look great and are relatively easy to modify. Rivorossi still lives on through the Walther's line, though the new tooling has made the cars "Outstanding". Prices are not too bad as you can get a lot of the Walther's cars for $20 to $24 on the internet instead of the LHS $34 price.

[Anonymous]

QUOTE: Originally posted by BB9004

What I got from a European source (railway.fr) is that the Lima group, which owns Rivarossi, Arnold, Jouef and Pocher, declared bankruptcy with intent to liquidate in Italian courts on July 10 after severe losses in 2002 and a long period of serious infighting among the shareholders. Production continued through June but after that it stopped.

If Roco has indeed purchased the Rivarossi line, can you confirm the source of this information?

David

Who is taking responsibility for the new release of the new HO FEF and what country is it
being produced in?

[Anonymous]

QUOTE: Originally posted by BB9004

What I got from a European source (railway.fr) is that the Lima group, which owns Rivarossi, Arnold, Jouef and Pocher, declared bankruptcy with intent to liquidate in Italian courts on July 10 after severe losses in 2002 and a long period of serious infighting among the shareholders. Production continued through June but after that it stopped.

If Roco has indeed purchased the Rivarossi line, can you confirm the source of this information?

David

Who is taking responsibility for the new release of the new HO FEF and what country is it
being produced in?

[darth9x9]

Well, whoever retools/re-releases Rivarossi stuff, they will have to replace the pizza cutters with wheels and flanges that don't ride on the ties in order to compete successfully.

[darth9x9]

Well, whoever retools/re-releases Rivarossi stuff, they will have to replace the pizza cutters with wheels and flanges that don't ride on the ties in order to compete successfully.

[Fergmiester]

So does this mean we are up a creak without paddles regarding spare parts?

[Fergmiester]

So does this mean we are up a creak without paddles regarding spare parts?

[Anonymous]

Hornby plc in the UK has made an offer for all the Lima assets, including the Rivarossi, Arnold and Pocher brands. This is in the Italian courts at present and, if successful, the process should be completed by the end of this year.

Other offers may be received and considered in that time. Hornby has stated all production will be moved to China where the current Hornby production is. Hornby has also just purchased the Spanish firm of Electrotren.

This is likely to be good news for both sides of the pond. Hornby has introduced live steam into an OO scale model of A4 Mallard. Just think what live steam would be in a Rivarossi Big Boy! Mouth watering or what!

Below are the two press releases regarding Lima and Electrotren:-

The information on this page is updated via a feed from the London Stock Exchange's Regulatory News Service.


Hornby PLC - Offer for Lima Assets

RNS Number:2324W
Hornby PLC
08 March 2004


HORNBY PLC OFFERS TO ACQUIRE CERTAIN ASSETS
OF LIMA S.P.A (IN LIQUIDATION)


Hornby Plc ("Hornby"), the model and collectables group, is pleased to announce
that it has made an offer of Euro8 million (eight million Euros) or approximately
£5.3 million (1) to acquire certain assets (the "Assets") of Lima S.p.A (in
liquidation) ("Lima") (the "Offer"). It is intended that the Offer will be
funded from cash reserves and, if necessary, bank debt.

Lima, based in Vicenza and Brescia (Italy), is one of the best-known model
railway companies in Europe. Its brands include Lima, Rivarossi, Jouef, Arnold
and Pocher:

* Lima (HO gauge) features model railway subject matter from a variety of
European countries but with a focus on Italy. In addition, the Lima product
range includes OO gauge models based upon British and Australian locomotives
and rolling stock.
* Rivarossi (HO gauge) is a premium brand specialising in Italian and
American subjects.
* Jouef (HO gauge) is the best-known model railway brand in France
specialising in French railway models.
* Arnold (N gauge) focuses on subjects drawn from a number of European
countries.
* Pocher is a premium range of diecast automobile kits.

For the financial year to 31 December 2002, the turnover and loss before
taxation attributable to the Assets was Euro9.2 million (£6.1 million(1)) and Euro7.1
million (£4.7 million(1)), before exceptional income of Euro2.8 million (£1.8
million(1)), respectively. As at 14 July 2003, the net book value of those assets
that are the subject of the Offer was Euro6.9 million (£4.6 million(1)).

Prior to its liquidation Lima manufactured all of its products in Europe. If the
Offer is successful Hornby intends to transfer manufacturing to China as it has
transferred successfully the existing Hornby and Scalextric ranges.

Lima went into liquidation during summer 2003. Consequently, pursuant to Italian
law, the Offer is binding on Hornby while it remains possible that the competent
Italian Court may determine not to proceed with the Offer. In accordance with
due process, the current shareholders of Lima have on Friday, 5 March 2004 filed
before an Italian Court an application for a 'concordato preventivo'. The
admission by the competent Italian Court of such procedure requires, inter alia,
the approval by the creditors of Lima. The granting of such an arrangement would
ensure that Hornby is able to acquire only those assets that are the subject of
the Offer without taking on any current or contingent liabilities. The process
of approval of the 'concordato preventivo' may take up to 9 months from Friday,
5 March 2004. During this time the competent Italian Court may consider
alternative offers. Subject to approval of Lima's creditors and the competent
Italian Court and no other offers being accepted, Hornby is confident that the
Offer will be accepted and will be able to complete the purchase of the Assets
shortly after court approval is obtained.

Hornby will make further announcements as appropriate.

The Chief Executive of Hornby Plc, Frank Martin, commented:

" We are delighted to announce this offer, which, if successful, would form the
platform for our expansion into key European markets and importantly increase
our rate of growth in the USA. Our existing Hornby railway product range is
largely restricted to sales in the UK.

" We have demonstrated with our Hornby and Scalextric brands in the UK that the
combination of a model railway brand leader and a strong international slot car
racing business can produce excellent returns for shareholders. The acquisition
of Lima will bring model railway brand leadership in France, Italy and a strong
position in the USA and other world markets.

" We believe that the primary reason for Lima's difficulties was its inability
to remain competitive, given its high-cost European manufacturing base. By
moving production to China we believe that we will be able to return the Lima
brands to profitability and generate similar margins in Lima product ranges to
those that we have experienced since Hornby moved its manufacturing to China."


(1) Based on Euro/£ exchange rate of Euro1.503/£ per the Financial Times, 4 March 2004


-ends-

Date: 8 March 2004
For further information contact:

Hornby Plc City Profile Group
Frank Martin, Chief Executive Simon Courtenay
John Stansfield, Finance Director 020-7448-3244
01843-233500
Web: www.hornby.com or:
www.scalextric.com


This information is provided by RNS
The company news service from the London Stock Exchange


The information on this page is updated via a feed from the London Stock Exchange's Regulatory News Service.


Hornby PLC - Acquisition

RNS Number:1528X
Hornby PLC
31 March 2004



HORNBY PLC STRENGTHENS EUROPEAN MARKET POSITION WITH ACQUISITION
OF SPANISH FIRM ELECTROTREN S.A.

Hornby Plc ("Hornby"), the model and collectables group, is pleased to announce
that it has acquired the business and assets of Electrotren S.A. ("Electrotren")
for a cash consideration of EUR 7.9 million (seven million nine hundred thousand
Euros) or approximately £5.3 million* funded from cash reserves. The acquisition
will strengthen Hornby's position in its key European markets for model railways
and slot car racing products. Hornby's strategy is to enlarge its stable of
market leading hobby brands in the UK, Europe and the USA.

*Electrotren, based near Madrid (Spain), is the brand leader in model
railways in Spain.

*Electrotren has been, for the past three years, the exclusive distributor
of the Hornby "Superslot" slot car racing system in Spain.

For the financial year to 31 December 2003, the declared turnover and profit
before taxation of Electrotren was EUR 3.0 million (£2.0 million*) and
EUR 0.8 million (£0.5 million*) respectively. As at 31 December 2003, the net
assets of Electrotren were EUR 1.9 million (£1.3 million*).

Electrotren was founded in 1951 and, until its acquisition by Hornby, has
remained under the ownership of the founding Gonzalez family. Electrotren has
specialised in the design and production of HO and N gauge model railway
locomotives, rolling stock and accessories. These products are marketed in Spain
and throughout mainland Europe. Following the acquisition, Pablo and Almudena
Gonzalez, the son and daughter of the founder, will continue to be responsible
for the day-to-day management of Electrotren.

In June 2001, Hornby appointed Electrotren as its exclusive distributor in Spain
for slot racing products. Spain is the only major market in the world where
Hornby does not possess the rights to market its slot racing products under the
"Scalextric" brand. Instead, the brand "Superslot" is used. Since June 2001,
Electrotren has succeeded in trebling sales of "Superslot" in Spain and has
recently completed the relocation of all model railway manufacturing to China.

The Spanish market for slot racing products is one of the largest in the world.
Spain also has a strong following for the MotoGP motorcycle race series. Hornby
has recently acquired worldwide exclusive rights to produce a range of slot
racing motorcycles based on MotoGP. It is expected that the MotoGP range will
provide a unique opportunity to increase sales of Superslot products in Spain.

Hornby's bankers have indicated that, following the acquisition of Electrotren,
they would be prepared to extend the necessary lines of credit in order for
Hornby to complete the acquisition of certain assets of Lima S.p.A announced on
8 March 2004, should the offer be accepted, subject to negotiating acceptable
facility agreements.

The Chief Executive of Hornby Plc, Frank Martin, commented:

" We are delighted to announce the acquisition of Electrotren. This will provide
a platform to increase our sales of slot racing products in Spain, spearheaded
by our recently launched MotoGP range. In addition, the market leading position
of Electrotren in the Spanish model railway market will provide a significant
platform for sales growth arising from the recently completed move of production
to China. In many ways Electrotren is in the same position as Hornby was 3 years
ago - the difficult decisions have been implemented, whilst the full benefits
have yet to be realised. We are also delighted to welcome Pablo and Almudena
Gonzalez to the Hornby team. They will continue to run Electrotren as Managing
Director and Operations Director respectively. Over the past 3 years we have
formed an excellent business relationship with them and we have every confidence
that they will continue to improve the performance of Electrotren over the
coming years. Their knowledge of the Spanish market and the wider European
market will also be of great help to us as we develop our model railway business
outside the UK.

" The proposed acquisition of certain assets of Lima S.p.A is also proceeding to
plan. If, as expected, we are able to complete the acquisition of the Lima
assets later this year, we will be in a position of brand leadership in model
railways in Spain (Electrotren), France (Jouef), Italy (Lima/Rivarossi) and of
course the UK (Hornby).

" Thus, Lima, when coupled with Hornby and Electrotren, will enhance further our
continental European presence. Whilst we expect Lima to take some months before
contributing positively to earnings post acquisition, we expect Electrotren to
contribute positively from the outset.

" We have demonstrated in the UK that a brand leading position in model
railways, coupled with a strong slot-racing business, provides an exceptionally
strong trading platform. We expect to be able to leverage similar positions in
the markets mentioned above."

* Based on EUR/GBP exchange rate of EUR 1.4996/£ per the Financial Times,
31 March 2004.

-ends-


Date: 31 March 2004
For further information contact:

Hornby Plc City Profile Group
Frank Martin, Chief Executive Simon Courtenay
John Stansfield, Finance Director Chris Lane
01843-233500 020-7448-3244
Web: www.hornby.com or:
www.scalextric.com

[Anonymous]

Hornby plc in the UK has made an offer for all the Lima assets, including the Rivarossi, Arnold and Pocher brands. This is in the Italian courts at present and, if successful, the process should be completed by the end of this year.

Other offers may be received and considered in that time. Hornby has stated all production will be moved to China where the current Hornby production is. Hornby has also just purchased the Spanish firm of Electrotren.

This is likely to be good news for both sides of the pond. Hornby has introduced live steam into an OO scale model of A4 Mallard. Just think what live steam would be in a Rivarossi Big Boy! Mouth watering or what!

Below are the two press releases regarding Lima and Electrotren:-

The information on this page is updated via a feed from the London Stock Exchange's Regulatory News Service.


Hornby PLC - Offer for Lima Assets

RNS Number:2324W
Hornby PLC
08 March 2004


HORNBY PLC OFFERS TO ACQUIRE CERTAIN ASSETS
OF LIMA S.P.A (IN LIQUIDATION)


Hornby Plc ("Hornby"), the model and collectables group, is pleased to announce
that it has made an offer of Euro8 million (eight million Euros) or approximately
£5.3 million (1) to acquire certain assets (the "Assets") of Lima S.p.A (in
liquidation) ("Lima") (the "Offer"). It is intended that the Offer will be
funded from cash reserves and, if necessary, bank debt.

Lima, based in Vicenza and Brescia (Italy), is one of the best-known model
railway companies in Europe. Its brands include Lima, Rivarossi, Jouef, Arnold
and Pocher:

* Lima (HO gauge) features model railway subject matter from a variety of
European countries but with a focus on Italy. In addition, the Lima product
range includes OO gauge models based upon British and Australian locomotives
and rolling stock.
* Rivarossi (HO gauge) is a premium brand specialising in Italian and
American subjects.
* Jouef (HO gauge) is the best-known model railway brand in France
specialising in French railway models.
* Arnold (N gauge) focuses on subjects drawn from a number of European
countries.
* Pocher is a premium range of diecast automobile kits.

For the financial year to 31 December 2002, the turnover and loss before
taxation attributable to the Assets was Euro9.2 million (£6.1 million(1)) and Euro7.1
million (£4.7 million(1)), before exceptional income of Euro2.8 million (£1.8
million(1)), respectively. As at 14 July 2003, the net book value of those assets
that are the subject of the Offer was Euro6.9 million (£4.6 million(1)).

Prior to its liquidation Lima manufactured all of its products in Europe. If the
Offer is successful Hornby intends to transfer manufacturing to China as it has
transferred successfully the existing Hornby and Scalextric ranges.

Lima went into liquidation during summer 2003. Consequently, pursuant to Italian
law, the Offer is binding on Hornby while it remains possible that the competent
Italian Court may determine not to proceed with the Offer. In accordance with
due process, the current shareholders of Lima have on Friday, 5 March 2004 filed
before an Italian Court an application for a 'concordato preventivo'. The
admission by the competent Italian Court of such procedure requires, inter alia,
the approval by the creditors of Lima. The granting of such an arrangement would
ensure that Hornby is able to acquire only those assets that are the subject of
the Offer without taking on any current or contingent liabilities. The process
of approval of the 'concordato preventivo' may take up to 9 months from Friday,
5 March 2004. During this time the competent Italian Court may consider
alternative offers. Subject to approval of Lima's creditors and the competent
Italian Court and no other offers being accepted, Hornby is confident that the
Offer will be accepted and will be able to complete the purchase of the Assets
shortly after court approval is obtained.

Hornby will make further announcements as appropriate.

The Chief Executive of Hornby Plc, Frank Martin, commented:

" We are delighted to announce this offer, which, if successful, would form the
platform for our expansion into key European markets and importantly increase
our rate of growth in the USA. Our existing Hornby railway product range is
largely restricted to sales in the UK.

" We have demonstrated with our Hornby and Scalextric brands in the UK that the
combination of a model railway brand leader and a strong international slot car
racing business can produce excellent returns for shareholders. The acquisition
of Lima will bring model railway brand leadership in France, Italy and a strong
position in the USA and other world markets.

" We believe that the primary reason for Lima's difficulties was its inability
to remain competitive, given its high-cost European manufacturing base. By
moving production to China we believe that we will be able to return the Lima
brands to profitability and generate similar margins in Lima product ranges to
those that we have experienced since Hornby moved its manufacturing to China."


(1) Based on Euro/£ exchange rate of Euro1.503/£ per the Financial Times, 4 March 2004


-ends-

Date: 8 March 2004
For further information contact:

Hornby Plc City Profile Group
Frank Martin, Chief Executive Simon Courtenay
John Stansfield, Finance Director 020-7448-3244
01843-233500
Web: www.hornby.com or:
www.scalextric.com


This information is provided by RNS
The company news service from the London Stock Exchange


The information on this page is updated via a feed from the London Stock Exchange's Regulatory News Service.


Hornby PLC - Acquisition

RNS Number:1528X
Hornby PLC
31 March 2004



HORNBY PLC STRENGTHENS EUROPEAN MARKET POSITION WITH ACQUISITION
OF SPANISH FIRM ELECTROTREN S.A.

Hornby Plc ("Hornby"), the model and collectables group, is pleased to announce
that it has acquired the business and assets of Electrotren S.A. ("Electrotren")
for a cash consideration of EUR 7.9 million (seven million nine hundred thousand
Euros) or approximately £5.3 million* funded from cash reserves. The acquisition
will strengthen Hornby's position in its key European markets for model railways
and slot car racing products. Hornby's strategy is to enlarge its stable of
market leading hobby brands in the UK, Europe and the USA.

*Electrotren, based near Madrid (Spain), is the brand leader in model
railways in Spain.

*Electrotren has been, for the past three years, the exclusive distributor
of the Hornby "Superslot" slot car racing system in Spain.

For the financial year to 31 December 2003, the declared turnover and profit
before taxation of Electrotren was EUR 3.0 million (£2.0 million*) and
EUR 0.8 million (£0.5 million*) respectively. As at 31 December 2003, the net
assets of Electrotren were EUR 1.9 million (£1.3 million*).

Electrotren was founded in 1951 and, until its acquisition by Hornby, has
remained under the ownership of the founding Gonzalez family. Electrotren has
specialised in the design and production of HO and N gauge model railway
locomotives, rolling stock and accessories. These products are marketed in Spain
and throughout mainland Europe. Following the acquisition, Pablo and Almudena
Gonzalez, the son and daughter of the founder, will continue to be responsible
for the day-to-day management of Electrotren.

In June 2001, Hornby appointed Electrotren as its exclusive distributor in Spain
for slot racing products. Spain is the only major market in the world where
Hornby does not possess the rights to market its slot racing products under the
"Scalextric" brand. Instead, the brand "Superslot" is used. Since June 2001,
Electrotren has succeeded in trebling sales of "Superslot" in Spain and has
recently completed the relocation of all model railway manufacturing to China.

The Spanish market for slot racing products is one of the largest in the world.
Spain also has a strong following for the MotoGP motorcycle race series. Hornby
has recently acquired worldwide exclusive rights to produce a range of slot
racing motorcycles based on MotoGP. It is expected that the MotoGP range will
provide a unique opportunity to increase sales of Superslot products in Spain.

Hornby's bankers have indicated that, following the acquisition of Electrotren,
they would be prepared to extend the necessary lines of credit in order for
Hornby to complete the acquisition of certain assets of Lima S.p.A announced on
8 March 2004, should the offer be accepted, subject to negotiating acceptable
facility agreements.

The Chief Executive of Hornby Plc, Frank Martin, commented:

" We are delighted to announce the acquisition of Electrotren. This will provide
a platform to increase our sales of slot racing products in Spain, spearheaded
by our recently launched MotoGP range. In addition, the market leading position
of Electrotren in the Spanish model railway market will provide a significant
platform for sales growth arising from the recently completed move of production
to China. In many ways Electrotren is in the same position as Hornby was 3 years
ago - the difficult decisions have been implemented, whilst the full benefits
have yet to be realised. We are also delighted to welcome Pablo and Almudena
Gonzalez to the Hornby team. They will continue to run Electrotren as Managing
Director and Operations Director respectively. Over the past 3 years we have
formed an excellent business relationship with them and we have every confidence
that they will continue to improve the performance of Electrotren over the
coming years. Their knowledge of the Spanish market and the wider European
market will also be of great help to us as we develop our model railway business
outside the UK.

" The proposed acquisition of certain assets of Lima S.p.A is also proceeding to
plan. If, as expected, we are able to complete the acquisition of the Lima
assets later this year, we will be in a position of brand leadership in model
railways in Spain (Electrotren), France (Jouef), Italy (Lima/Rivarossi) and of
course the UK (Hornby).

" Thus, Lima, when coupled with Hornby and Electrotren, will enhance further our
continental European presence. Whilst we expect Lima to take some months before
contributing positively to earnings post acquisition, we expect Electrotren to
contribute positively from the outset.

" We have demonstrated in the UK that a brand leading position in model
railways, coupled with a strong slot-racing business, provides an exceptionally
strong trading platform. We expect to be able to leverage similar positions in
the markets mentioned above."

* Based on EUR/GBP exchange rate of EUR 1.4996/£ per the Financial Times,
31 March 2004.

-ends-


Date: 31 March 2004
For further information contact:

Hornby Plc City Profile Group
Frank Martin, Chief Executive Simon Courtenay
John Stansfield, Finance Director Chris Lane
01843-233500 020-7448-3244
Web: www.hornby.com or:
www.scalextric.com

[Anonymous]

What I got from a European source (railway.fr) is that the Lima group, which owns Rivarossi, Arnold, Jouef and Pocher, declared bankruptcy with intent to liquidate in Italian courts on July 10 after severe losses in 2002 and a long period of serious infighting among the shareholders. Production continued through June but after that it stopped.

If Roco has indeed purchased the Rivarossi line, can you confirm the source of this information?

David

[Anonymous]

What I got from a European source (railway.fr) is that the Lima group, which owns Rivarossi, Arnold, Jouef and Pocher, declared bankruptcy with intent to liquidate in Italian courts on July 10 after severe losses in 2002 and a long period of serious infighting among the shareholders. Production continued through June but after that it stopped.

If Roco has indeed purchased the Rivarossi line, can you confirm the source of this information?

David

[AltonFan]

To correct my previous post, Rivarossi has been purchased by the Austrian firm Roco, which I understand has led to some quality improvements in the Rivarossi line.