In 1906, Karl Arnold founded the company in Nuremberg, specializing in sheet metal toys in N gauge. Many production facilities were destroyed in the Second World War. In 1997 Rivarossi took over Arnold, and in 2004 Hornby PLC bought shares of Rivarossi with brand names and shapes. Models are being developed in England, Italy, Spain and Germany. Arnold is one of the top 3 N gauge manufacturers in Germany.