Business Acquisition at Castelnau Group

• Permanent Capital - we have no exit investment horizon; our ideal investment would be permanently held. We think this makes us a great home for founders trying to find the appropriate custodian for businesses they have built.
• Empowering Leadership – we look to empower rather than interfere with strongleadership teams.
• Flexibility and Speed - we can be flexible in terms of transaction structuring,adapting to what makes most sense for both parties. We are a non- bureaucraticorganisation, meaning we can make decisions very quickly.
• Strengthening Businesses – beyond capital, we can offer strategic guidance,access to a valuable network of business expertise, and shared learnings from ourother portfolio companies.
• Respect for Culture – we value company culture, seeing it as fundamental to long-term success. In fact, companies with unique cultures that need preserving are justthe kind we are looking for.
• Proven Success – backed by Phoenix Asset Management Partners, we have a track record of successful acquisitions and a reputation for fairness and integrity in all our business dealings.

• Clear Growth Potential – scalable businesses that will benefit from strategic investment, operating in a market that provides significant headroom for growth.
• Competitive Advantage/Economic Moat - businesses with strong market position, brand recognition, and customer loyalty. Long-term durability of the business model.
• Technological Adaptability – opportunity to benefit from technological changes and innovation.
• Demonstrated Earnings Power – ideally businesses with a track record of profitability and cash generation.
• Strong Management Team – experienced teams we can help super-charge.

Guy Stainthorpe, Co-founder of Corgi Model Club

In early 2024, our portfolio company Hornby Plc acquired The Corgi Model Club (“CMC”). The initial consideration was structured as a mix of cash, and an agreement to acquire CMC’s outstanding inventory. A profit-based earnout was also introduced to reward the sellers based on CMC’s future business performance. As part of the transaction, co-founder Guy Stainthorpe joined Hornby to lead the combined Corgi and CMC business, becoming the Brand Managing Director of Corgi.

Launched in 2021, CMC developed a successful subscription model offering reissues of classic Corgi models. The business brought over 6,000 active subscribers and £2 million in annual revenue at a 15% operating margin.

The acquisition gave Hornby full ownership of the CMC customer base, product rights, and subscription infrastructure – supporting its direct-to-consumer strategy and future brand growth.

Watch Guy reflect on the journey from launching Corgi Model Club to joining the Hornby Group and how Castelnau supported a smooth transition.

If you are thinking about selling all or part of your business, or are seeking a long-term partner to drive its future growth, we’d love to hear from you.

📩 All enquiries will receive a reply.
info@castelnaugroup.com