Connect Group disposes of Books division
Ending the Books connection.
Connect Group is disposing of its Books division, in a move which it says will allow it to focus on the integration of its core businesses, which include Smiths News, Tuffnells Parcel Express and Pass My Parcel.
In an official statement, Connect Group said it had signed an agreement with Aurelius Equity Opportunities to dispose of Connect Books for a total cash consideration of up to £11.6m.
Mark Cashmore, Chief Executive Officer, commented: “Earlier this year we concluded that the Books division was no longer core to our future, but this in no way detracts from its position as leader in the books distribution markets. We believe the agreement represents a good outcome for all key stakeholders.
“The disposal is consistent with our strategy to focus on opportunities in Early Morning and Mixed Freight distribution. In this regard, the integration of the Group’s businesses is proceeding at pace and the disposal will give us greater financial flexibility as we continue to drive our strategic priorities.
“Looking ahead, the Group remains focused on delivering long-term value for shareholders, focusing and leveraging our capabilities to deliver sustainable growth, strong cash generation and dividend.“
The Connect Group will announce its trading statement on 23 January and its interim financial results for the six months ending 28 February on 1 May.
