Hornby shares jumped by a third today after it emerged that Sports Direct owner Frasers had built a near-9% stake in the model trains-to-planes firm.
The investment by the FTSE 100 group builds on a relationship that already sees Hornby products, which also include the Scalextric and Airfix brands, sold in Frasers’ 320 Game stores and concessions.
Hornby said that Frasers snapped up 11.1 million of its shares, lifting its total holding to 15.2 million shares or 8.9%. The block of shares is likely to have been bought from one of the two biggest investors on the register, Phoenix Asset Management or Artemis,
Hornby boss Olly Raeburn said: ““Frasers Group has built a powerful ecosystem through its brand partners, scaled shared services, and distribution channels. We have long admired their approach to merchandising and logistics and welcome them as a supportive shareholder. We look forward to exploring commercial opportunities in working together to unlock the full potential of Hornby’s much loved brands.”
Frasers CFO Chris Wootton, said: “Frasers Group has a vision to build the planet’s most admired and compelling brand ecosystem. Hornby’s portfolio of unique heritage brands are already part of GAME’s product offer and we look forward to exploring opportunities to further leverage our scale in retail logistics and distribution. This is consistent with our strategy of pursuing strategic interests to enhance value for all stakeholders.”
Frasers has stakes in a number of other UK retailers, including Currys, AO World and ASOS. Shares in AIM-listed Hornby rose 7.25p to 28.25p.
