WH Smith cuts price of high street arm by £12m to close deal
First announced on 28 March, the deal follows a period of renegotiation after Modella sought changes to the transaction terms due to a weaker trading outlook
WH Smith has officially completed the sale of its UK high street business to private investment firm Modella Capital for £40m, down from the previously expected £52m.
Under the new terms, WH Smith will receive £10m upfront, with up to £20m in deferred payments linked to the business’s cash flow performance through to August 2026. A further £10m may be realised depending on the timing and value of certain tax assets.
News of the deal’s completion signals the start of the group’s transformation into a pure play global travel retailer.
First announced on 28 March, the deal follows a period of renegotiation after Modella sought changes to the transaction terms due to a weaker trading outlook and reduced cash flow from the High Street business.
According to WH Smith, the revised structure “ensures the transaction remains viable and beneficial for shareholders”.
The company said it now anticipates headline net debt to be about £425m by 31 August.
It added that its travel divisions continue to trade in line with expectations as it enters the peak summer period, saying that it is now positioned to focus entirely on its international travel retail operations, which it described as offering “substantial global growth opportunities”.
