WH Smith PLC has agreed the sale of its UK High Street business to Modella Capital, in a deal worth £76 million, which will see shops rebranded as TGJones.
The deal with Modella, which also owns Hobbycraft, does not include the WHSmith brand, and the Travel divisions will continue to trade under the WHSmith brand across 32 countries, including at major airport locations, hospitals and rail stations in the UK.
The High Street business will operate for a short period under the WHSmith brand while it rebrands as TGJones.
In its statement, WH Smith said: ”As the Group has successfully developed its Travel Essentials proposition, including a higher proportion of food and drink, health and beauty and tech accessories, its customer offer in Travel is increasingly different from that of its UK High Street business.’’
The sale does not include the Group’s personalised online greeting card business, funkypigeon.com, but the statement noted: “The Group will explore strategic options for this part of the Group, including a possible sale.’’
Carl Cowling, WH Smith group chief executive, commented: “As we continue to deliver on our strategic ambition to become the leading global travel retailer, this is a pivotal moment for WHSmith as we become a business exclusively focused on Travel.
‘’As our Travel business has grown, our UK High Street business has become a much smaller part of the WHSmith Group. High Street is a good business; it is profitable and cash generative with an experienced and high-performing management team. However, given our rapid international growth, now is the right time for a new owner to take the High Street business forward and for the WHSmith leadership team to focus exclusively on our Travel business.’’
