British travel retailer WH Smith has complete offloading its UK high street business for a sale price £12m ($16.4m) less than previously disclosed.

The retailer closed the sale to investment company Modella Capital to focus on expanding its global travel retail presence.

The transaction, initially valued at £52m, has been revised to a maximum of £40m, including an up-front payment of £10m in the fiscal year 2025, an additional £20m tied to the business's cash flow until August 2026 and the remainder as deferred tax assets become payable.

A further £10m may be realised based on the timing and realisation of tax assets.

Despite the reduced sale value, transaction and separation costs are reported to remain at £27m.

Post-transaction, WH Smith anticipates its headline net debt to be £425m as of 31 August 2025.

As the peak summer trading period approaches, the travel divisions are expected to perform in line with market expectations.

WH Smith stated: “This transaction is consistent with the group's strategic focus on travel retail and creates a pure play global travel retailer which is well positioned to capture the substantial global growth opportunities in its key markets and drive enhanced shareholder value.”

The revised terms were agreed upon after Modella Capital sought amendments due to the changed outlook and trading performance.

WH Smith negotiated these terms to ensure a successful completion of the sale, since the original agreement was no longer viable.

The retailer reported a 7% increase in global travel revenue on a constant currency basis for the 13 weeks leading up to 31 May 2025.