# LGB to have new owners



## GN_Rocky (Jan 6, 2008)

I just got an E-mail from a guy I know who has "insider" info about LGB. 
It seems that a company is looking to buy up Marklin in Germany which includes what was left of LGB. 

Here is what the story that was sent to me reads:

Simba-Dickie, Germany's largest manufacturer of toys, has signed a letter of interest with Michael Pluta, representative of the banks owning Gebr. Märklin & Cie. GmbH, regarding purchase of Gebr. Märklin & Cie. GmbH, its assets and liabilities, including but not limited to plants, brands, inventory, and tooling.


Simba-Dickie has started going over Märklin's financial books as part of the process of valuating the company and negotiating a purchase price. Simba-Dickie expects to complete this sometime in February/March 2013. 


Maybe good things are in the works down the road.

Rocky


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## vsmith (Jan 2, 2008)

Back when the Big Hindenburg spectacularly burned and crashed on that field in Lakehurst NJ I predicted that if Marklin aquired EPL they would for all intents and purposes become a high end beautique brand like KISS or Brawa, high prices and an haughty "if you can't afford it - you don't deserve it" attitude. I feel I have been about 70% correct in that assessment, example: $200+MSRP for a Toytrain level Porter (ohhh it has sound and decoder?... BFD if you don't want it) and correspondingly higher prices across the board for most items while targeting more affluent model rr's. EXACTLY like Markin markets their HO, N and Z lines where "if you can't afford it - you don't deserve it" rules the roost. All during one of the worst worldwide economic downturns in recent history.


Now are we see the end result of this steadfasted determination to ignore market forces? Just this year LGB announced they are resurrecting the Toytrain line...sort of...and now this sale (or hostile takeover?) offer.


One things for sure, no one ever accused Dickie of making overpriced haughty high end beautique toys:


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## Greg Elmassian (Jan 3, 2008)

*http://www.marklin-users.net/forum/...post366867*

Some links and a translation giving more information, looks like it's gone pretty far. Somehow Simba-Dickie does just not have the same "ring" as LGB...

(Of course, years ago, I went to lgb.com, that site was (really, no kidding) Lesbians, Gays, and Bisexuals ... I about fell out of my seat... LGB finally bought the domain lgb.com... (the old site is now LGBT, you can guess the T)

Greg


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## lotsasteam (Jan 3, 2008)

Looks like a new generation of ride on trains, non rusting , plastieeeeeek!


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## San Juan (Jan 3, 2008)

Posted By Greg Elmassian on 15 Nov 2012 12:28 PM 


(Of course, years ago, I went to lgb.com, that site was (really, no kidding) Lesbians, Gays, and Bisexuals ... I about fell out of my seat...
Greg
Same kind of thing. 

In college I saw a sign for the LGB club with "LGB" in big bold letters. Well I was amazed thinking this was a train club at my college. So I got closer to the sign to see what this was all about. And, like Greg's reaction to the website, I was shocked to see what the club really was. Thankfully the sign mentioned what the club really was. Otherwise that would have been an interesting first meeting.


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## Garratt (Sep 15, 2012)

Were they all busy shunting?


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## vsmith (Jan 2, 2008)

Posted By Greg Elmassian on 15 Nov 2012 12:28 PM 


(Of course, years ago, I went to lgb.com, that site was (really, no kidding) Lesbians, Gays, and Bisexuals ... I about fell out of my seat... LGB finally bought the domain lgb.com... (the old site is now LGBT, you can guess the T)

Greg
*T?* why "Trains" of course....


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## stevedenver (Jan 6, 2008)

well i am a red box guy-i love it
im worried
LGB when family owned, and even before its line of newer models exploded, seemed to alway have laods of unsold stock-i don tknow if this is normal for manufacturing-but due to unsold stuff, i got LGB almost exclsuively , on close out

then Marklin, a name , no, The Name, in model trains for over a century, takes LGB, a similar high end product, and really cant make it go-(granted there were a lot of pieces to pick up after LGBOA and LGB split, and all the molds and stuff possibly forever lost in china-and a hiatus from the market entirely , it seemed, for 2-3 years-all the time losing market presence to its competition,

and the exchange of the dollar agains the euro-making a pricey product even more so...
and the QC, from what ive seen and heard, not terribly good, and thus damaging a reputation for quality, (and in a serious way, value as well)

why does a company buy another? to negotiate a good price for the company, hopefully justified by projected sales a nd potential profits
to gain a larger market section against competitors, or to get intellectual property rights, distribution rights, etc 
buy debt for pennies on the dollar because they can work it with a lender, ie a market opportunity ?

or.. 

to eliminate a competitor from the market entirely and try to obtain the market by using the name and producing a product with the same name-even if unrelated (coors molson buys small breweries and then closes them but keeps the product name and then makes a beer with similar characoristics for example) 

im thinking this might not be too good, in terms of what we historically know and expect of LGB trains-marklin or original-lots of parts and labor to make a model trrain loco 
im thinking that both LGB and marklin are really expensive in the overall scheme of folks who buy trains-which per se elimnates a large market share-but nevertheless some market remains

a large toy manufacturer may be seeking to broaden a portion of its market- 
HO may well still be viable for wide interest and some affordability 
especially assuming the new buyer has different distribution sources - 



g scale, perhaps also, 

g scale has a small following and my concnern is that while there is nevertheless a market from which to make money- 
i dont know if this will last-it will depend on return on investment i suppose-or- 
perhaps the well known names will be used and a different product entirely offered 

or 
perhaps toy train line exclusively-not unlike what lego and playmobil offer in a way-
high volume, low production cost, aimed towards kids, 
it seems that the model market is entirely different than the toy market, (regardelss of the rubber rule factor, many LGB items are indeed models) 


i dont know -to me model trains are a dying interest-not meant to be offensive to anyone-simply- among the children i know, as well as most adults-no one has trains, although all love mine when they see them-but none has decided to go into the hobby - it was mentioned somewhere that time and skills for modeling ,even simply buying a train and a ready made accesorie to plop down, is on the wane-i know a dollhouse supplier here in denverr ( similar im my mind to trains in a way) that is simply collapsing because no one does miniatures anymore-time and cost , interest, and ability

my point is that if the interest in trains is declining, then it makes sense that some offering might be around, but not an extensive one 
or 
signifcant changes will be needed in manufacturing to bring the price down -it is a fairly pricey hobby, even in its most simple form 

thoughts on why a toy maker would enter this-a compatible product to broaden its offereings?
-a distribution and marketing system in place that might foster this? 

an entirely new and revamped product and process to change pricing?

how do you get trains into the market when competing with so many other gee whiz things?
the train goes around a loop, smokes lights and might make sound-so what else does it do Dad?

i ask myself, why did we never see LGB in toys r us? i can only think price (too high) and volume (too low) based on the average person


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## Ltotis (Jan 3, 2008)

Steve, 
I purchased some LGB at Toy R Us. It was many, many years ago. LGB pulled out of selling at big box retailers. Even when Marshall's got Toy Train series product it was on a blow out from LGBoA 
LAO


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## krs (Feb 29, 2008)

A press conference started right now at this time in Germany where the official takeover of Marklin (and Trix and LGB) by Simba Dickie is being announced. 

Simba-Dickie is a family owned business, just as LGB was. 
Should be a positive move since Simba-Dickie can invest some of their available capital and they have been in the toy business for years. 

Knut


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## vsmith (Jan 2, 2008)

Part II


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## Gary Armitstead (Jan 2, 2008)

I have to agree with Vic here. LGB is a mere shadow of itself from the "glory" days back in the eightie's. If Marklin is willing to turn it over to this toy company, what does that say? AND stevedenver mentions the molds "lost in China".....what about the quality molds lost in Germany during the takeover. The quality of the LGB product HAS deteriorated during these takeovers. I SEE the difference between the product I purchased in the 1985-89 era and the product available now. NO comparison in materials used or the finish of the product, IMHO. AND remember, LGB and Marklin will only be two product lines out of the very many others that Simba-Dickie markets. I just looked at Simba-Dickee website. Check it out for yourself. 

http://www.simba-dickie-group.de/en...ands.shtml

They will become step-children in the family.


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## vsmith (Jan 2, 2008)

Considering this is Dickies current idea of offering in large scale: 










edit] Now that I think about it, could be very good news for guys like me who love to chop up liver and turn it into steak.


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## Greg Elmassian (Jan 3, 2008)

Hmm... they own Tamiya ? 

How did the Japanese ever let that go? 

There is a Tamiya USA, and the logo looks different.... hmm... something is funny. 

Greg


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## vsmith (Jan 2, 2008)

Greg they only own Tamiya's German/European shares/intererests, apparently the Japanese and American divisions are still semi-independant, wierd set up.


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## krs (Feb 29, 2008)

Posted By Gary Armitstead on 21 Mar 2013 10:00 AM 
They will become step-children in the family.










If you check how Marklin will fit into the Simba-Dickie Group you will find that the structure for them is totally different that for the other companies.

Simba-Dickie created a separate company, Sieber & Sohn GmbH & Co. KG, that took over Marklin, the two existing CEO's remain in place with Florian Sieber joinen them at an equal level to run the company.
The positive aspects are that there is now a ot more capital available, Simba-Dickie is focused more on the international market than Marklin (70% of their revenue last year was generated internationally) and they are more forward looking than Marklin management is at this time.
The problem I see is that LGB is still a step-child within the Marklin organization, same as now - no indication that will change.

We'll have to wait and see how things develop, but this take-over is seen very positively by both Marklin and Simba-Dickie.

Knut


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## Cougar Rock Rail (Jan 2, 2008)

I think overall this will be good for LGB. I'm really curious what will happen to Walthers...I know what I would LIKE to have happen to them!









Keith


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## DennisB (Jan 2, 2008)

Here in Canada, Walthers is doing nothing to sell the LGB product line. There are private sellers on eBay that are doing a better job. It is time for new owners.


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## Cougar Rock Rail (Jan 2, 2008)

I agree, Dennis, I'm in Canada too--not that they are getting any better treatment in the US. I think they will set up a different distribution model soon that will be much more responsive... 

If I was an HO manufacturer using Walthers to distribute my products, I'd be pretty choked considering they sell and promote their OWN HO products! They only look out for themselves and as you say, they do nothing to promote LGB. Time for somebody new to step in and shake the tree a little. While I'm on a rant, in a similar way I'd say it's also time to get rid of the NHL and start a new league, and get rid of the party system in politics and have all independants who answer to the electorate, not their party whip. 
Ahhh....feel better already... 

Keith


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## aceinspp (Jan 2, 2008)

Looks like any way you slice it LGB will never be the same. As far as walthers I have never cared for them they like every one else stared jacking up prices. Ha when I was into HO I'd look at there catalog and then go elsewhere to buy at lower prices. Later RJD


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## dt (Feb 3, 2013)

From the Simba Dickie website 

"The Märklin headquarters in Baden-Württemberg will remain the centre for the development and production of high-quality, special articles in future as well. Györ, Hungary, will remain the centrepiece of the Company’s core production. Additional production lines will be returned to Europe from China over the medium term." 

The Chinese probably copied all the molds and will start a new company selling fakes on a website based in Hong Kong.


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