Here is some big news. Horizon Hobby will be sold to an investor group led by Joe Ambrose, Horizon’s Chief Executive Officer. The full press release is available at HorizonHobby.com or you can read it below.
It will be very interesting to see the new direction take shape. We wish Joe Ambrose and company continued success.
“CHAMPAIGN, ILLINOIS–December 9, 2013— Horizon Hobby, Inc., an international
developer, marketer and distributor of radio control (RC) hobby products, model
trains and other hobby products, announced today that its board of directors has
signed a definitive agreement under which Horizon Hobby would be sold to an
investor group led by Joe Ambrose, Horizon’s Chief Executive Officer. The
investment group includes Armory Capital, LLC and Mill City Capital L.P., two
investors that have deep experience with management-led acquisitions. Financial
terms were not released.
“We are delighted to announce this transaction, which will help us grow and provide continuity,” said
Mr. Ambrose. “Both Armory Capital and Mill City Capital are long-term investors
who are uniquely aligned with Horizon’s culture, core values and strategy. This
transaction will give us a capital structure that will enable us to pursue our
growth strategy well into the future. In addition, Horizon’s current management
team will be retained, which will enable us to continue the successful culture
that has been developed by our founders and dedicated employees.
“We believe that this transaction will be seamless
to our retail partners and consumers. We intend to continue to focus on
providing our many hobby enthusiasts with exciting and innovative hobby
products. This acquisition will provide us with the capabilities to help us
grow, ensuring a bright future for our employees.”
Rick Stephens, founder of the company said, “When we founded
Horizon Hobby we sought to instill a culture of respect for Horizon’s employees,
customers, and partners. Over the years we pursued our mission ‘To help people
have fun with hobbies’ by providing our consumers innovative products backed by
the highest levels of service. My brother Larry and I are pleased that our new
investors agree with our approach, and we believe this transaction presents a
tremendous opportunity for our employees.”
The transaction, which is expected to close in January, 2014, is subject to
customary regulatory approval.
About Horizon Hobby, Inc.
Inc. is an international developer, marketer and distributor of radio control
(RC) hobby products, model trains and other hobby products. An employee-owned
company, Horizon employs nearly 700 people and sells products in more than 50
countries around the world. Corporate headquarters, along with the main
distribution facility and product service center, are located in Champaign,
Illinois. Additional distribution centers are in Ontario, California; Harlow,
England (site of Horizon Hobby Ltd.); and Elmshorn, Germany (site of Horizon
Hobby GmbH). California is also home to the RC car design center (Corona), a
west coast distribution center in Ontario, and the Athearn model train group
(Long Beach). Learn more at http://www.horizonhobbycorp.com.
About Armory Capital, LLC
Armory Capital is a family investment office based in Champaign,
Illinois. The firm was founded by Jacob Ambrose, Rusty Freeland and Greg Lykins,
in association with the August C. Meyer, Jr. family. The firm’s members have
years of experience understanding the challenges and opportunities facing
business owners and management teams. They believe in long-term partnerships
based on mutual trust and integrity. The family has a track record of investing
in and holding other companies, with deep and long roots with all of these
companies. Learn more at www.armorycap.com.
About Mill City Capital L.P.
Capital, L.P. (“Mill City”), is a private equity firm based in Minneapolis,
Minnesota. Mill City was founded with a commitment to identifying, executing,
and managing private equity investment opportunities through patience, market
sector experience and focus, and relationships built over many years. Mill City
seeks to create shareholder value by forming partnerships with management teams
based on trust and integrity. The firm focuses on investments in companies in
targeted consumer and industrial sectors located in the Midwestern U.S. and
portions of Canada.”