Findel Education sells to local authority
Studio Retail has reached an agreement to sell its Findel Education division to Wakefield City Council for a consideration of £50 million. The sale price represents a multiple of 10.3 times the division's 2019 financial year adjusted EBITDA. The proceeds are earmarked to make a voluntary payment to the group's defined benefit pension fund and to pay down debt.
The buyer is the lead authority in the Yorkshire Purchasing Organisation (YPO) which supplies educational establishments and institutions with a range of educational supplies along with other products. The sale is subject to both shareholder approval and clearance by the UK Competition and Markets Authority.
Speaking about the deal, Studio Retail CEO Phil Maudsley said: "Education has undergone a digital transformation over the past two years, and we are confident that YPO represents a natural new home for the business. We believe this transaction is in the best interests of all Studio shareholders, allowing us to focus on driving further growth within our core Studio value retail business."