Hornby, the well-known model railway company based in Kent, announced on Friday that it has sold its long-held slot car racing brand, Scalextric, for £20 million to Purbeck Capital Partners, a relatively lesser-known investment firm. Scalextric, a staple in the hobby market since its inception in 1956, has been a significant contributor to Hornby's revenues, especially during the hobby boom experienced in the wake of the Covid pandemic. The brand has not only historical significance but also remains popular among racing enthusiasts, making the sale noteworthy for both the company and its customer base.

The new owner, Purbeck Capital Partners, is led by Mark Brown, the former CEO of Sazerac, a large US-based spirits company. This acquisition represents the first investment from Brown's family office into the hobby industry, suggesting aspirations for growth and strategy changes within the scalability of Scalextric’s offerings. Hornby’s decision to divest a major part of its portfolio raises questions about its future direction and potential reallocation of resources towards other brands such as Airfix and Corgi.

As Hornby aims to navigate a post-pandemic environment where hobby demand may fluctuate, the strategic decision to sell Scalextric may be reflective of broader business goals. With an increasing competition in the toy and model markets, the sale potentially opens new avenues for investment by Purbeck, while also allowing Hornby to concentrate on reinforcing its remaining brands.