In a deal valued at £76 million, it will see the brand’s high street stores eventually rebrand as TGJones.
The company’s high street operation is made up of about 500 stores, the first of which was opened 230 years ago.
Over the past decade, the firm has focused on its more fruitful travel retail business, which operates from airports, train stations and hospitals.
The high street business now accounts for only about 15% of the annual group trading profit.
WHSmith agrees to sell off its UK high street chain
Sharing details of the sale, WH Smith said all stores, colleagues, assets and liabilities of the High Street business will move under Modella Capital’s ownership as part of the Transaction.
The retailer added that the high street chain will operate for a short transitional period under the WHSmith brand whilst the business rebrands as TGJones.
Carl Cowling, Group Chief Executive of WHSmith 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.
“We have a highly successful Travel business, operating in fast growing markets in 32 countries and we are constantly innovating to deliver strong returns and meet our customers’ and partners’ needs.
“Our Travel business currently accounts for around 75% of the Group’s revenue and 85% of its trading profit.
“With the ongoing strength in our UK 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.
“As our Travel business has grown, our UK High Street business has become a much smaller part of the WHSmith Group.
“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 WHSmith leadership team to focus exclusively on our Travel business.
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“I wish the High Street team every success.
“As we look forward as a simplified, travel-focused Group, I am excited about the Group’s future prospects.
“With a clear strategy, a strong balance sheet, and operations in high growth and attractive markets, we are well-positioned to generate substantial growth and value for all stakeholders.”
