Hornby will have the option to acquire a majority stake in Warlord two years after the initial acquisition and to acquire any remaining shares on future anniversaries.
Hornby has announced that it has acquired a 25% share in Warlord Games, based in Nottingham, for cash consideration of £1.25m. The international models and collectibles group also has the option to acquire a majority stake in Warlord on or around the second anniversary of this initial acquisition and then to acquire any remaining shares in Warlord on future anniversaries.
Warlord was founded in 2007 by two former Games Workshop employees and is now one of the world’s leading producers of principally historical tabletop wargames, miniatures and accessories. Warlord hold the licences to produce games and miniatures for the much-loved TV series, Dad’s Army and the comic, 2000 AD.
Warlord manufactures primarily in the UK and sells to over 600 distributors and stores around the world via its sales teams in the UK, Europe and the Americas. Warlord also operates a successful direct-to-consumer operation via its dedicated website.
Warlord will continue to be managed by its existing directors and the company believes that this transaction creates a number of opportunities to accelerate growth of the business further still.
Olly Raeburn, CEO of Hornby, said: “We are absolutely delighted to be able to join forces with Warlord Games, a business we have always admired. We very much look forward to working with the team there to maximise the potential of the business and use their significant experience and expertise for the benefit of the wider group.”
John Stallard, CEO and founder of Warlord, added: “We are very much looking forward to working closely with Hornby as we have been big fans for many years. We see this as a huge opportunity to continue to build Warlord long into the future, as well as to contribute in any way we can to the future success of Hornby and its stable of iconic brands, as there are innumerable opportunities and synergies in sales, marketing and production.”
The acquisition is being funded by an increase in Hornby’s current loan facility; Phoenix UK Fund Ltd, the company’s subordinated lender, has agreed an extension to the term and the amount of its existing secured credit facility. The facility is being extended from £9m to £11.25m and the term extended by 12 months to 31st December 2024.
The company will have the option to draw down on these funds to capitalise on the positive momentum in the business and increase investment in future development plans.
