UK. Leading global travel retailer WHSmith has agreed the sale of its online personalised greeting cards business funkypigeon.com to Card Factory.
The deal represents an enterprise value of £26 million (US$35 million) on a cash and debt-free basis and an equity value of £24 million (US$32 million).
The move is consistent with the group’s strategic focus on travel retail, which led to divestment of its High Street operations earlier this year.
A WHSmith statement said, “The Group is now a pure play global travel retailer, well positioned to capture the substantial global growth opportunities in its key markets and drive enhanced shareholder value.”
Net cash proceeds, when adjusted for transaction costs, are anticipated to be £21 million (US$28 million) and will be used to improve the Group’s net debt position. Completion is expected before the end of the calendar year, subject to required regulatory approvals. ✈
