Horizon Hobby to be Acquired by Investor Group
In industry news, we just saw a press release that says Horizon Hobby is being sold to an investor group led by Joe Ambrose. (Horizon’s Chief Executive Officer). The investors in the new endevor are Armory Capital LLC, and Mill City Capital L.P.
We have reached out to a few people for comment on this, but odds are this won’t effect the Horizon Hobby that you know right now. Since it’s pretty much an internal buy, things really shouldn’t change too much. If anything, it’s a way to help get some more cash coming in so they can keep advancing and improving.
Hit the Horizon Hobby webpage for any more info.
Need more Horizon News? Hit that link.
You can read the full press release below by pressing READ MORE.
Horizon Hobby, Inc. to be Acquired by Investor Group Led by CEO Joe Ambrose
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
“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.
Horizon Hobby, 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 2013 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 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.
Mill City 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.