Sainsbury's sells Argos to Swift Partners in £120m deal

Published Jul 31, 06:38 AM UTC

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Sainsbury's has announced the sale of its struggling catalogue retailer Argos to Swift Partners, a new company led by On the Beach chairman Richard Pennycook and former Morrisons boss Trevor Strain, backed by private equity firm True Capital. The deal is valued at £120m, a fraction of the £1.4bn Sainsbury's paid for Argos in 2016. The supermarket will receive at least £70m upon completion in February, with an additional £50m over three years, including proceeds from a warehouse sale. Sainsbury's CEO Simon Roberts stated the sale allows the company to focus on its core food business and improve margins. Argos generated £4.1bn in sales last year but has been a drag on profits amid a subdued general merchandise market. The deal is expected to reduce Sainsbury's net debt by £250m, though it will incur a £350m one-off accounting charge. Sainsbury's shares rose over 5% following the announcement.

Source

City AMWestern

Original headline: Sainsbury’s to sell Argos in £120m cut-price deal

Original language: EN-GB

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Sainsbury's sells Argos to private equity-backed Swift Partners for £120m

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