Horizon Hobbies places bid on Hobbico

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I agree will deff miss tower but I'm so ready for some1 to take over and get things back in stock. This is the only way to make a traxxas worth while lol. 2050kv 6s traxxas rustler crazy yes also f ing awesome lol.
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If Horizon wins the bid, it will be interesting, I expect. HH had a nice, clean upgrade path. Force for uber cheap, ECX for 'main line' entry level, Losi/Veterria for the basher / scaler, and TLR for the racing crowd.

Adding Arrma / Axial adds to the Basher and Scaler segment. So will Horizon just let the brands duke it out? or will they try to find a way to make them more silo'ed? Like move the pure scalers into Veterria and the crawlers into Axial (but can you really separate them?) For Arrma / Losi, how do you divided up the basher market?

As far as Arrma continuing to grow, so long as they keep the sales up, they should have funding to release new produces. Next up, before any new models, they need to get the few weak spots in the Voltage and 4x4 mega addressed and updated, and get the Traxxas/Nero stuff sorted. Build solid parts distribution, and THEN and only then, look at new models...
 
I had good experiences with Horizon's customer support and warranty. Hopefully Horizon has the clout to deal with weak patent claims but I guarantee you that a certain troll sues them next.
 
I had good experiences with Horizon's customer support and warranty. Hopefully Horizon has the clout to deal with weak patent claims but I guarantee you that a certain troll sues them next.

Don't forget HH has already been thru this once with Traxxas, and they came to an agreement. The Twin Hammers still lives, and still with the laydown shocks. So the hope is real! :)
 
FYi i just talked to my rep at great planes and horizon won the bid for hobbico it will be interesting to see what happens in the next few months ,she said arrma and axial are still going to be around cuz thats why horizon bought hobbico for arrma and axial .i guess we will have to wait and see
 
Well we all need part support so hopefully they can get that back online and fast. How about a nero part 4.0.........1/5 big rock would be a crusher
 
http://www.news-gazette.com/news/local/2018-03-31/horizon-the-sole-bidder-hobbicos-rc-business.html

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
 
Coming from a RC Heli background, I have owned a few of Horizons products.
Have to tell you..... I've had nothing but top notch customer service from them.
Great company!
 
Great news. Yes, it is now official, Horizon Hobby buys Hobbico, including all of Hobbico's RC related brands. The details of the purchase will all be finalized on Friday. This includes Tower Hobbies, Great Planes, Axial, and most importantly to all of us, they purchased Arrma. Hobbico was the lone bidder in the bankruptcy auction for Hobbico, and the court approved the bid for $18.8 million.

http://www.rccaraction.com/industry-news-horizon-hobby-buys-hobbico/
 
Imagine hitting the lottery for 100 million and being able to buy Hobbico?? Haha they got a deal. Hopefully this means great things.
 
Imagine hitting the lottery for 100 million and being able to buy Hobbico?? Haha they got a deal. Hopefully this means great things.
That reminds me of the old saying -

How do you make a small fortune in the RC business?

Start with a large fortune...

LOL


[clicks glass]
[clicks glass]
[clicks glass]
[Stands, raising glass]

Here's to our new Horizon Hobby Overloards! May they have much luck and prosperity in the years to come!
 
It will be interesting to see which brands Horizon keeps and which get shuttered.
For example, do the need Spektrum and Futuba? Tactic is the economy line of controllers, do they need both levels?
Does Duratrax stay? Does Horizon have tires and such under a house brand or let it go?
Which stays; Arrma or ECX? My guess and what this board hopes for is Arrma.
And the list goes on.
 
It will be interesting to see which brands Horizon keeps and which get shuttered.
For example, do the need Spektrum and Futuba? Tactic is the economy line of controllers, do they need both levels?
Hobbico didn't own Futaba, just the USA / NA distribution rights. Maybe they will drop distribution. Or they may decided to keep distribution, just not list them at Horizonhobbies.com? Humm...
Does Duratrax stay? Does Horizon have tires and such under a house brand or let it go?
Before the Bankruptsy, I heard Duratrax was on the chopping block. If they were one of the losing money brands, I could see it going away.
Which stays; Arrma or ECX? My guess and what this board hopes for is Arrma.
IMHO, Arrma hits ECX and Losi both, and hard. With Arrma growing like it has the past few years, I don't see them killing it, but how will they integrate it? Will be interesting.
And the list goes on.

Like Axial vs Vaterra.
 
Just received the following email:

Important Notice Regarding the Sale of Your Personal Information and Your Right to Opt-out
Dear Valued Customer:


As you may be aware, Tower Hobbies' parent company, Hobbico, declared bankruptcy in January 2018 and has initiated a sale process.

We are excited to share with you that the RC brands and Tower Hobbies website that you have come to rely on over the years will continue. The Bankruptcy Court has approved the sale of Hobbico's RC business to Horizon Hobby, LLC. Horizon Hobby has been in business since 1985 and serves customers in the United States and around the World. Horizon Hobby also maintains a strong online presence and warmly welcomes Hobbico customers to its growing family. With this acquisition, Horizon Hobby looks to build upon Hobbico's great reputation for providing quality RC products to customers across the country. More information about Horizon Hobby can be found at https://www.HorizonHobby.com.

As part of the sale, Horizon Hobby is purchasing Tower Hobbies' customer databases. The Tower Hobbies Privacy Policy provides that the company will not share any personally identifiable information with any third party without your consent. Under this Privacy Policy, you have the right to opt-out of the sale and the transfer of your personal information to Horizon Hobby, and of receiving future e-mail or mail communications from Horizon Hobby.


  1. You may elect to opt out by any of the following methods:
  2. Clicking the link at the bottom of this email message;
  3. Sending an e-mail to Tower Hobbies' web master at [email protected] with the information necessary for Hobbico to identify you in its database and process your opt-out election (such as your name, email address, street address and telephone number);
  4. Calling the Tower Customer Service at 800-637-6050 or;
  5. Mailing to the following address:
Tower Hobbies
PO Box 9078, Champaign, IL 61826
Please include in your letter the information necessary for Horizon Hobby to identify you in its database and process your opt-out election (such as your name, email address, street address and telephone number). Please note that opting out will remove your proof of purchase data required for warranty service.

If you opted in to receive promotional emails from Tower Hobbies, you may also receive promotional emails from Horizon Hobby unless you opt out of having your information conveyed to Horizon Hobby.

Your request to opt out must be received no later than April 6, 2018.

After the opt-out deadline, Horizon Hobby has offered to conduct a sweepstakes for Tower Hobbies customers who decline to opt-out as a thank you for your interest. We thank you for your past patronage and hope you will always continue to enjoy the RC hobby.


Sincerely,
Tower Hobbies
 
Here's what I received from Tower Hobbies: Important Notice Regarding the Sale of Your Personal Information and Your Right to Opt-out

Dear Valued Customer:

As you may be aware, Tower Hobbies' parent company, Hobbico, declared bankruptcy in January 2018 and has initiated a sale process.


We are excited to share with you that the RC brands and Tower Hobbies website that you have come to rely on over the years will continue. The Bankruptcy Court has approved the sale of Hobbico's RC business to Horizon Hobby, LLC. Horizon Hobby has been in business since 1985 and serves customers in the United States and around the World. Horizon Hobby also maintains a strong online presence and warmly welcomes Hobbico customers to its growing family. With this acquisition, Horizon Hobby looks to build upon Hobbico's great reputation for providing quality RC products to customers across the country. More information about Horizon Hobby can be found at https://www.HorizonHobby.com.

As part of the sale, Horizon Hobby is purchasing Tower Hobbies' customer databases. The Tower Hobbies Privacy Policy provides that the company will not share any personally identifiable information with any third party without your consent. Under this Privacy Policy, you have the right to opt-out of the sale and the transfer of your personal information to Horizon Hobby, and of receiving future e-mail or mail communications from Horizon Hobby.


  1. You may elect to opt out by any of the following methods:
  2. Clicking the link at the bottom of this email message;
  3. Sending an e-mail to Tower Hobbies' web master at [email protected] with the information necessary for Hobbico to identify you in its database and process your opt-out election (such as your name, email address, street address and telephone number);
  4. Calling the Tower Customer Service at 800-637-6050 or;
  5. Mailing to the following address:
Tower Hobbies
PO Box 9078, Champaign, IL 61826
Please include in your letter the information necessary for Horizon Hobby to identify you in its database and process your opt-out election (such as your name, email address, street address and telephone number). Please note that opting out will remove your proof of purchase data required for warranty service.

If you opted in to receive promotional emails from Tower Hobbies, you may also receive promotional emails from Horizon Hobby unless you opt out of having your information conveyed to Horizon Hobby.

Your request to opt out must be received no later than April 6, 2018.

After the opt-out deadline, Horizon Hobby has offered to conduct a sweepstakes for Tower Hobbies customers who decline to opt-out as a thank you for your interest. We thank you for your past patronage and hope you will always continue to enjoy the RC hobby. Sincerely,
Tower Hobbies
 
ooops, I did not see Woodie's post.

I put this on another thread 2 days ago, but this one is getting more looks:

Great news. Yes, it is now official, Horizon Hobby buys Hobbico, including all of Hobbico's RC related brands. The details of the purchase will all be finalized on Friday. This includes Tower Hobbies, Great Planes, Axial, and most importantly to all of us, they purchased Arrma. Hobbico was the lone bidder in the bankruptcy auction for Hobbico, and the court approved the bid for $18.8 million.

http://www.rccaraction.com/industry-news-horizon-hobby-buys-hobbico/
 
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