WH Smith buys InMotion Entertainment Group for USD198 million
Staff Writer |
WH Smith said Tuesday that it has bought travel retailer InMotion Entertainment Group for USD198 million as part of the company's strategy to expand its international travel division.
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WH Smith reported a 1% rise in group like-for-like revenue and 5% in total revenue for the first eight weeks of new financial year.
The Travel unit, which now generates two thirds of annual operating profit, recorded a 4% rise in same store sales and a 10% jump in total revenue. Same store sales and total revenue for the High Street unit fell by 2% and 1% respectively in the eight-week period.
The UK listed books and stationery retailer said the InMotion acquisition will double the size of the company's international travel business and will support the launch and growth of WH Smith's airport format in North America.
The deal is predicted to be earnings per share accretive in first full financial year after completion, which is expected by the end of 2018.
InMotion, which will continue to operate as a standalone business of WH Smith, is the largest airport-based digital accessories retailer in North America and operates 114 concession stores across 43 airports in the US. For 2018, InMotion is expected to deliver sales of USD166 million and earnings before interest, taxes, depreciation and amortisation of USD23 million.
To support the acquisition, WH Smith has signed a new four-year term loan of GBP200 million with existing lenders and extended its revolving credit facility of GBP140 million for further year to December 2023. ■
A low pressure wave forming along a cold front will track across the New England coast this morning, bringing a period of rain, heavy at times for much of New England, especially for Maine today.