Corgi is a well-known brand name in the collectible, die cast model vehicles market, with sales in the UK, USA and Europe.
In August 1995 Cinven supported a management buyout from its then parent, American toy sector leader Mattel Inc. Its incumbent management were highly experienced, capable and sales-led and had driven Corgi’s growth in the collectibles market.
The collectibles sector had shown significant growth and the outlook for the future was encouraging. The management team had demonstrated that they were able to develop sales successfully and had identified further opportunities to increase them. Because high margins are achievable in the collectibles market, future sales growth was predicted to boost future profits appreciably.
In July 1999, four years after its initial investment, Cinven sold the business to a trade buyer.
Multiple returned on investment: 3x.