Studio Retail Group PLC (LON:SRG) has found another buyer for its Findel Education business.
The Competition and Markets Authority (CMA) effectively kiboshed the proposed sale of the division late last year to the Yorkshire Purchasing Organisation but now Studio Retail has agreed to sell the business to West Moorland 221, a newly-formed company owned by investment funds managed by Endless, for £30mln on a cash-free, debt-free basis.
Studio Retail added it has made a working capital facility of £2mln to Findel Education that runs until the end of September and carries an interest rate of 4.6% a year.
The net cash proceeds will be used to make a voluntary payment to the group’s defined benefit pension fund of £9.0mln with the remainder used to reduce the group’s net debt.
With the sale of Findel Education practically done and dusted the company has published the outcome of the strategic review it kicked off in December.
The review concluded the best course of action is to focus the group’s resources on the pure-play Studio business; as such, the company is no longer officially up for sale.