WH Smith sells high street business for £76m

WH Smith has sold its 480-shop high street operations to retail-focused investor Modella Capital for £76m. Under its new ownership, the business will be led by chief executive Sean Toal. The deal does not include the WH Smith brand, although Modella will use the brand for a “short transitional period” and then rebrand shops as TGJones. The sale leaves WH Smith focused only on travel retail, with 1,200 shops in airports and train stations across 32 countries. Travel retail now accounts for 75% of the group’s revenue and 85% of trading profit. It said offloading the high street business will let it enhance revenue growth and its profit margin.  The deal is expected to complete in the final quarter of the current fiscal year. Carl Cowling, group chief executive, said: “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… “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 WH Smith leadership team to focus exclusively on our travel business.”