WHSmith completes sale of high street business
WHSmith has completed the sale of its high street business to Modella Capital.
The sale – which was announced in March – comes as the retailer shifts its focus to its more successful travel division.
WHSmith said that since the announcement, the future of the high street business had led to a more cautious outlook from stakeholders, as well as a period of softer trading. As a result, Modella Capital sought amendments to the terms of the transaction, with the private equity firm reaching an agreement to pay less than the original price of £76m.
The revised sale value terms include an up-front payment of £10m, up to £20m of a deferred consideration in which WHSmith and Modella equally share in the business’ cash flow generation until August 2026, and up to £10m of further proceeds based on certain tax assets within the high street business.
Following the sale, the WHSmith name is set to disappear from UK high streets, with the stores being rebranded to TGJones.