27th Feb 2026 17:08
(Alliance News) - Castelnau Group Ltd on Friday said it has agreed to the sale of Scalextric, a Hornby Hobbies business and therefore part of Castelnau's portfolio, to Scalextric Motorsports.
The total consideration for Scalextric is GBP20 million, of which GBP8.5 million is in cash up front, and the remaining is deferred and payable out of free cash flow, Castelnau said.
The sale is expected to be completed early next month.
Scalextric Motorsports was established by Purbeck Capital Partner's President & Chief Executive Officer Mark Brown to be the holding company of the Scalextric business in the future.
As part of the transaction, "Mark has agreed to an ongoing role helping Hornby with its wider strategic transformation, the end goal of which is to have a series of entrepreneurial, profitable brands operating sustainably and independently, led autonomously from the centre," Castelnau said.
Hornby will use the sale proceeds to pay down debt and invest in other brands while supporting Scalextric's operations with its existing infrastructure, and managing the business as an agent to ensure operational continuity. The new holding will instead focus on future growth.
Hornby CEO Olly Raeburn said: "This is a hugely exciting development for the Scalextric brand, which builds on encouraging progress over the last couple of years...We look forward to supporting the execution of his vision and strategy."
Brown commented on behalf of Scalextric Motorsports: "We are both honoured and thrilled to be acquiring such an iconic British motorsport brand, which has been bringing family and friends together for motor racing competition, excitement, and fun at home for nearly 70 years."
He added: "As we look to a long-term future, with Scalextric as a now family-owned company, we are energised by the opportunity to continue bringing competitive racing fun to families, while expanding into new areas of motorsport...particularly at a time when families are trying to balance time spent online versus real world activities."
Castelnau shares closed down 0.5% at 94.00 pence each on Friday in London.
By Martin Miraglia, Alliance News reporter
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