By Peter De Keles

Author  Bio A long, awaited decision has now been taken: Sieber & Sohn GmbH & Co. KG, is taking over model railway manufacturer Marklin.

Press Release from Simba-Dickie Group
The success story continues. Through Sieber & Sohn GmbH & Co. KG, Michael Sieber, a pioneer of the German toy industry, will become the new majority shareholder at Marklin. This secures the future of the company with a long tradition in Germany's Swabia region. All of the current positions in both locations - Goppingen, Germany and Gyor, Hungary - will remain intact, and all outstanding liabilities to banks and other creditors will be settled.

Under the takeover agreement, Florian Sieber will join the current dual leadership of the company as the third Managing Director of equal rank, working alongside Wolfrad Bachle and Stefan Lobich. Sieber is well-aware of the responsibilities that his new role involves. "The Marklin name is synonymous with a whole category of toys, and has stood for top German quality since 1859", he explains. "That is why it is my great pleasure to help shape the future of this traditional brand with a history dating back more than 150 years."

The new ownership will also secure the business location of Goppingen and the surrounding districts over the long term: the key provisions of the existing Company agreement with the workforce have successfully been extended beyond 2014. For salaried employees in Goppingen, this means a safeguarding of positions until 2019 - a provision signed by 98 percent of the employees.

A large share in the arrangements is played by liquidator Michael Pluta, who has been assisting with developments at Marklin since March 2009. "During the past four years, we have managed to place the Company back on a stable footing. Having Sieber & Sohn GmbH & Co. KG join as new owners ultimately confirms the success of the decisions we have made to date." Pluta endorses the new ownership structure. "The agreement guarantees complete service of outstanding claims and continuation of business operations - a very positive development indeed."

Sieber echoes the assessment: "Mr Pluta and his team have chosen the right course for the future. All things considered, I see great potential for growth for Marklin and the subsidiary companies Trix and LGB." Above all, the multibrand strategy will be pursued and expanded. Sieber also sees children and teens returning as the focus for the future business strategy. The basis for this already exists in the "Marklin my world" and "LGB Toy Train" lines. "Anyone who, like me, was enthusiastic about Marklin even as a child will remain loyal to the brand as an adult."

The Marklin headquarters in Baden-Wurttemberg will remain the centre for the development and production of high-quality, special articles in future as well. Gyor, 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 takeover is currently awaiting approval by the German Federal Cartel Office [Bundeskartellamt]. It is expected, however, that the plans will be found consistent with applicable legal norms.

Link to Simba-Dickie Group press release

Link to Marklin USA website

Good news

This is good news for the LGB line. Also the article stated that "additional production lines" will be moved back to Germany from China. This is also good news. The German made products tend to be of better quality. I hope this works out this time.

David A. Maynard - 03/22/2013 - 10:03

Marklin

Marklin has been a front line manufacturer for years. With LGB and Trix it is even better. Moving production back from China is a very positive step since the quality, printing and overall product appeal of the German/Hungarian product is superior to that of China. It secures the future for Marklin and the industry in general.

Chris Devereaux - 03/23/2013 - 07:26

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