Announcement - Sanda Kan
On November 17th 2008 Kader Holdings Company Limited (Kader) announced that it had agreed to buy Sanda Kan, one of Hornby’s suppliers in China. Kader is listed on the Hong Kong stock exchange and is a manufacturer of model railways and toys, both under its own brands and for OEM customers.
Following a highly leveraged buy-out in 2004, Sanda Kan has struggled under high levels of debt and numerous management changes. As a result of these and other factors Hornby has experienced delays in deliveries and unreliable service. In recent months Hornby has been closely engaged in the developing situation in order to ensure continuity of supplies.
The proposed acquisition of Sanda Kan by Kader is a welcome outcome and removes the uncertainty over the future of Sanda Kan.
Hornby is Sanda Kan’s largest customer and looks forward to continuing the long-standing relationship with Sanda Kan under its new ownership.
Frank Martin
Chief Executive
19 November 2008
