Corgi boards Hornby train; TAKEOVER: Model railway group swoops for toy cars.

Byline: By Will Oliphant

MODEL train company Hornby has bought out die cast toy firm Corgi for pounds 7.5 million.

Corgi, which began making pressed metal toys in Northampton in the 1930s, has produced famous models including the Batmobile, the Lotus John Player Special Formula One car and makes scale version of commercial vehicles including Eddie Stobart lorries.

Hornby, or Margate, said Leicester-based Corgi would sit fit in with its current business which makes Airfix models and Scalextric racing kits.

Chief executive of Hornby, Frank Martin, said: "We are delighted to announce the acquisition of Corgi. It is a fantastic brand and has a superb reputation worldwide.

"We intend to build on the brand's super heritage and invest to build its premier position in the market. The strategic fit with our existing businesses could not be better. We are confident that we will grow the scale of the business rapidly and drive it forward.

" The team at Hornby has the expertise and a successful track record in managing a portfolio of famous hobby sector brands.

Corgi, which moved production to the Far East to cut costs, failed to make a profit last year despite sales of around pounds 6.5 million.

Included in the deal is Corgi's own model railway brand, Bassett-Lowke.