WHSmith to Sell High Street Business in £76m Deal

WHSmith (LON: SMWH) said Friday that it has agreed to sell its UK High Street business to Modella Capital in a £76 million deal, as the retailer shifts its focus entirely to its fast-growing travel division.

The sale, which is expected to be completed in late 2025, marks a pivotal moment for the company as it becomes a pure-play global travel retailer. 

The company’s travel business has built up over the last 10 years, and it now has 1,200 travel stores across 32 countries. 

The deal to sell its high street business will generate gross cash proceeds of £52 million, with net cash proceeds of around £25 million after costs.

The High Street business includes around 480 stores and 5,000 employees, all of whom will transfer to Modella Capital. 

While the stores will continue to operate under the WHSmith name for a transitional period, the business will eventually be rebranded as TGJones.

WHSmith stated that the sale aligns with its long-term strategy of capitalising on growth in global travel retail markets, where passenger numbers are forecast to rise significantly in the coming decades. 

The company has increasingly prioritised airports, rail stations, and hospitals, with its travel segment contributing 75% of total revenue and 85% of trading profit last year.

Carl Cowling, CEO of WHSmith, said: “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.”

WHSmith will retain its travel stores across 32 countries, while its online greeting card business, Funky Pigeon, is not included in the sale and remains under strategic review with a sale as one potential option.

WHSmith shares are down around 1.4% in early Friday trading.