Private equity firm Modella Capital acquired WH Smith’s UK high street retail division for £76m, securing a portfolio of approximately 480 stores and 5,000 employees.

The deal marks a strategic shift for WH Smith, which will now focus exclusively on its fast-growing international travel retail business.
The sale represents a clean carve-out of WH Smith’s legacy storefront business, with the retained travel arm continuing to drive group performance. WH Smith now operates more than 1,200 travel stores across 32 countries, including airport, train station, and hospital locations. These operations make up the majority of group sales and profits.

Carl Cowling, Group CEO, described the divestment as “a pivotal moment” that allows WH Smith to concentrate fully on becoming a global leader in travel retail. “Given our rapid international growth, now is the right time for a new owner to take the high street business forward,” he said.

Modella Capital, known for its investments in Paperchase, Tie Rack, and most recently Hobbycraft, has strengthened its retail portfolio with this acquisition. The firm’s focus on specialist and heritage retail brands aligns with the long-standing identity of WH Smith’s high street stores, which will now be rebranded under the TGJones name.

The transaction follows a competitive process launched last year, during which other private equity firms including Hilco and Alteri were reported to have shown interest.

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