Horizon Hobbies places bid on Hobbico

[slick2500]

http://www.bigsquidrc.com/horizon-hobby-files-bid-to-buy-hobbico/

 

[GhostProtocol]

Very interesting. Is there a particular reason why Horizon Hobby doesn't currently sell Arrma vehicles?

 

[slick2500]

I'm not sure probably something with Hobbico being it's own distributor. And as far as I am aware Horizon doesn't sell anything made by Hobbico, not just Arrma.

 

[GhostProtocol]

I'm not sure probably something with Hobbico being it's own distributor. And as far as I am aware Horizon doesn't sell anything made by Hobbico, not just Arrma.

That's interesting. I always wondered about that.

 

[Iamtheoutcast]

http://www.bigsquidrc.com/horizon-hobby-files-bid-to-buy-hobbico/

From what I've heard hobbico is looking for a minimum bid of 38 million for rights to everything there distribution,manufacture patient rights. I was hoping for a reputable company to offer a bid and get the ball back rolling for us we will just have to c if they except such a low bid I think hobbico will have to sell off individual sectors of the company unless a Corp. Comes through with the 38 million they are asking for. I thought the bidding didn't start until the 26th of this month horizon hobby must be showing their inteest by setting a bid 3 days before it' supposed to start in Illinois.

 

[Trapper]

Let's all hope for a 5th scale Arrma now.

 

[Trapper]

Since losi said they weren't going to release a stock electric 5th scale monster truck they can release one as an Arrma !!!

 

[Trapper]

And hopefully use the losi Mt xl wheels and tires cuz them shits look bad ass

 

[slick2500]

And hopefully use the losi Mt xl wheels and tires cuz them shits look bad ass

Yeah they do, my lhs has one right as you walk in the front door on the floor, that thing is a beast.

 

[chevys10zr2003]

Yeah they do, my lhs has one right as you walk in the front door on the floor, that thing is a beast.

I think he basically wants the monster truck XL in electric form from the factory. I know they have the Desert Buggy XL-E but I don't know if they have the monster truck in electric. That thing would need like a 400kv motor running 12s but would be sweet. Lol

 

[slick2500]

I think he basically wants the monster truck XL in electric form from the factory. I know they have the Desert Buggy XL-E but I don't know if they have the monster truck in electric. That thing would need like a 400kv motor running 12s but would be sweet. Lol

Yeah only comes in gas, the Desert Buggy XL-E is the only 1/5th electric Losi makes.

 

[Mboss]

Latest information
http://www.liverc.com/news/announce...s_Horizon_Hobby_to_bid_for_Hobbico_RC_brands/

 

[GhostProtocol]

Latest information
http://www.liverc.com/news/announce...s_Horizon_Hobby_to_bid_for_Hobbico_RC_brands/

I wonder how this is going to work out...

 

[Mboss]

I wonder how this is going to work out...

Not sure...but an Arrma/Losi 1/5 scale hybrid would be sweetness!!!

 

[GhostProtocol]

I just hope Arrma is in good hands.

 

[Friso Fox]

Any news on the Hobbico bidding yesterday?

 

[Bri26]

I read somewhere that they moved the auction to Delaware and it is scheduled to take place tomorrow.

Best regards,
Brian

 

[Jerry-rigged]

Horizon Hobbies put in a bit (Stalking horse - I had to read up on what that means) for the RC division. Tower, Great planes, Arrma, Axial, all the RC stuff. Their bid does not include the modeling stuff, Estes, etc.

I think bidders have until April 6 to place their bids. Then I expect a week or so with no news as the bids are evaluated. So maybe by tax day (4/15) we may hear something.

 

[WoodiE]

Any news on the Hobbico bidding yesterday?

Here is an article from their local newspaper.

CHAMPAIGN — Hobby-product distributor Hobbico has found a buyer for its remote-control business: cross-town competitor Horizon Hobby.

Horizon Hobby has agreed to buy several units of Hobbico for a combined $18.8 million, subject to an auction scheduled for Wednesday.

"We believe this transaction, if completed, will further strengthen Horizon's position as the market-leader in the RC industry," Horizon Hobby President and CEO Joe Ambrose said in a statement. "Horizon and Hobbico have served many of the same retailers and customers for years. Upon completion of this transaction, Horizon will work to provide a smooth transition within the industry."

Hobbico filed for Chapter 11 bankruptcy protection in January with the goal of finding a buyer.

"Acquiring and incorporating Hobbico's RC business with Horizon allows us to further strengthen our organization so that we are well-positioned to grow and meet the future needs of retailers and customers," Ambrose said. "It is unfortunate that Hobbico's financial position forced it to seek bankruptcy protection, but this transaction will result in a strong organization with the resources to expand and prosper."

If completed, Horizon will be buying Hobbico's Great Planes and Tower Hobbies divisions, as well as brands including Axial and Arrma. Hobbico had been asking for at least $22 million for these companies.

The purchase won't include Estes, United Model, Revell US or Revell Germany.

Additionally, "Horizon will not be assuming any of Hobbico's debts or other liabilities in this transaction," Ambrose said.

Following the auction, where Horizon would be the stalking-horse bidder, the purchase would close April 6.

In separate court filings Friday, Hobbico said it had reached a $6 million stalking-horse purchase agreement with a corporation called Estes Industries LLC for its Denver-based Estes subsidiary.

The auction had originally been scheduled for this coming Monday in Chicago and was moved to Wednesday in Delaware.

The two-day delay is "just a matter of process efficiency, as there are certain filings that need to take place the day before (Tuesday) in Delaware, and this eliminates travel to Chicago for an auction the following day," said Howard Salazar, human resources director for Hobbico.

He was unable to comment on the purchase agreements.

With a stalking-horse bid, the potential purchasers essentially set the floor bid of the auction in exchange for certain protections.

For example, if Horizon Hobby isn't the successful bidder, it will receive a break-up fee of 3 percent of its base bid, or $540,000.

Both Hobbico and Horizon Hobby are among the top 25 employers in the county, according to the Champaign County Economic Development Corp.

Last year, Hobbico, one of the largest hobby product distributors in the country, said it had 415 employees in the county, and Horizon Hobby reported 341 employees.

Hobbico was formed in 1985, when Clint Atkins combined Don Anderson's Great Planes Model Distributors and Bruce Holecek's Tower Hobbies.

Horizon Hobby, founded in 1985 by Rick Stephens, was sold to an investment group in 2014. It has more than 700 employees around the world, including in California, France, Germany, the United Kingdom and China, according to its website.


http://www.news-gazette.com/news/lo...hobby-agrees-make-188m-bid-hobbico-units.html

 

[Pelham6Express]

I just hope Arrma is in good hands.

It could be as long as they keep ARRMA the way it was going. Before all this I saw ARRMA becoming just as big or bigger than Traxxas. Keep ARRMA the same way or make it better but don't nickel & dime and take away. I'm sure they are very happy to have Arrma under their belt. Traxxas probably thought ARRMA would be gone not the case. They might even become bigger under Horizon? I will miss tower I did use them for many years and no one else had easy pay.