WHSmith has sold its UK High Street business to retail investment boutique Modella Capital as it looks to become a pure play global travel retailer.

The retailer said that the sale, valued at £76 million in cash and debt-free, will it to focus on expanding its travel division, which has become a “substantial driver” of the company's revenues and profits.WHSmith's travel division will continue to operate under the WHSmith brand in 32 countries, with a strong presence in major airports, hospitals and railway stations.

As part of the sale to Modella Capital, the UK High Street business will continue operating under WHSmith brand for a short period, with the shops later rebranding as TGJones.

The High Street business, with its approximately 480 stores and 5,000 employees across the UK, will gradually transition to the new TGJones identity while maintaining its operations during this period.

Carl Cowling, group chief executive, commented: “As we continue to realise our strategic ambition to become the world's leading travel retailer, this is a pivotal moment for WHSmith as we become an exclusively travel-focused company.”

He added that the travel division currently accounts for around 75 per cent of the group's turnover and 85 per cent of its trading profit.

For the year ended 31 August 2024, the retailer said its travel division generated revenues of £1.46 billion.

“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,” he added.

The retailer added that it will focus on four key growth areas, which include boosting the in-store experience to boost more sales, maximising and expanding the retail space, and capitalising on the expected increase in air travel in the coming years.

“As our travel business has grown, our UK High Street business has become a much smaller part of the WHSmith Group,” said Cowling. “High Street is a good business; it is profitable and cash generative with an experienced and high-performing management team.”

The rebranding will help distinguish the business form WHSmith’s remaining operations, which are now focused on travel retail, the firm added.

The sale doesn’t include WHSmiths’ online personalised greeting card business, FunkyPigeon.com, which will remain part of the company for the time being. WHSmith added it will explore strategic options for this business, including a potential sale.

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