Secure Trust Bank Commercial Finance (STB CF), a leading provider of flexible asset-based lending solutions, has supported Modella Capital in its acquisition of the UK High Street operations of WH Smith Plc.
STB CF has provided a £50m asset-based lending facility, which will support the ongoing working capital requirements of the business as it enters a new phase of strategic development under Modella Capital's ownership, including the rebrand of its high street stores into "TG Jones". WH Smith will retain its brand for its travel shops in railway stations, airports and hospitals and its overseas operations.
Founded in 1792, WH Smith is an icon of the UK's retail sector, with TG Jones becoming the UK high street operation spanning 464 stores. The business is now set to enhance its UK high street store retail proposition, optimise operations, and pursue new growth opportunities with the backing of Modella Capital and its financial partners.
This latest deal represents an uptick in retail M&A activity for the STB CF team over the last two years, having previously supported Modella Capital with its Hobbycraft takeover. It also provided funding to Ann Summers in January 2024, to support its online expansion. This represents the team's continued focus on working alongside private equity, having completed 10 private equity deals across eight sponsors last year - an increase from six deals in the previous year.
Sean Toal, CEO at TG Jones, said: "The high street stores have a rich history and exciting future and we are focused on investing in our people, products and customers to reinforce our position under the new brand TG Jones. We're pleased to have the support of Modella Capital and Secure Trust Bank Commercial Finance, who both understand the retail landscape and share our ambition for sustainable growth."
Joseph Price, Managing Director at Modella Capital, said: "TG Jones represents exactly the kind of business we look to back, with a strong management team and clear opportunities for transformation and growth. Having worked with STB CF previously, we knew they would be the perfect partner for this transaction, and this latest deal with the team has allowed us to unlock significant working capital, setting TG Jones up for long-term success. We're excited to begin this new chapter with the management team."
Tony Young, Regional Sales Director at Secure Trust Bank Commercial Finance, said: "Having worked with Modella Capital previously, we're proud to once again support the team on this high-profile transaction. This deal demonstrates the strength of asset-based lending in enabling strategic private equity acquisitions and providing ongoing operational support, and it's great to continue adding to our portfolio of retail deals. We look forward to continuing our partnership with Modella Capital and the management team as they continue to drive the business forward under the TG Jones brand."