Horizon Hobby to be Acquired by Investor Group
Horizon Hobby Inc, parent company to many well known RC car related brands such as as TLR, Losi, Spektrum, Nitrotane etc. have announced that its board of directors has signed a definitive agreement under which the company 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.
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.
