By Ian Walker

WH Smith is selling its U.K. main street business to Modella Capital for 52 million pounds ($67.3 million) as it focuses on the travel sector, which accounts for 75% of group revenue.

The FTSE 250 listed company--which sells books, magazines and other items at airports and train stations as well as main street stores--said Friday that the sale doesn't include the WHSmith brand, nor its personalized online greeting card business, funkypigeon.com.

It plans to explore options for funkypigeon.com, including a possible sale.

The company said it expects to complete the sale in the final quarter of its fiscal year which ends Aug. 31.

Upon completion, WH Smith will get paid the first 36 million pounds, then a further 6 million pounds a year later. The remaining payment will be received upon and realization of certain tax assets within the main street business.

The deal puts an enterprise value on the main street business of 76 million pounds.

"With the ongoing strength in our U.K. travel division, and the scale of the growth opportunities in both North America and the rest of the world, we are in our strongest ever position to deliver enhanced growth as we move forward as a pure play travel retailer," Chief Executive Carl Cowling said.

The company added that it will continue to look at opportunities in the travel retail space when they arise.

WH Smith said in January that it was exploring the sale of its main street stores to focus on the travel business.

For the year ended Aug. 31, the travel business generated revenue of 1.47 billion pounds and headline trading profit of 189 million pounds.

Write to Ian Walker at ian.walker@wsj.com

(END) Dow Jones Newswires

March 28, 2025 03:46 ET (07:46 GMT)

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