North West firm Studio Retail Group (SRG) has announced the sale of its teaching and educational resources business in a deal worth £30m.
The Accrington-based listed group released details of the agreement in a statement to the markets on Monday, which will see Findel Education sold to a newly formed business called West Moorland 221 Ltd.
West Moorland is owned by investment funds managed by Leeds-based private equity investor Endless LLP.
SRG said it has made available a working capital facility of £2m to Hyde-based Findel Education, and the net cash proceeds will be used to make a voluntary payment to the group's benefit pension fund of £9m - with the remainder used to reduce group net debt.
The statement added that the disposal will "simplify" SRG's operations and allow management to focus on the "fast growing" business.
It added: "Following a transformational year for Studio, the Group intends to continue to pursue and accelerate its strategic vision of becoming the leading online value retailer with an integrated financial services offer."
Paul Kendrick, CEO of SRG, said: "Under SRG's ownership, Findel Education has transformed itself from a catalogue retailer to an online first business and we are confident that it will continue on the next phase of its digital transformation under the ownership of Endless.
"We are thankful to all of our colleagues at Findel Education for all their hard work and wish them all the best for the future."
Findel is a supplier of resources and equipment to schools in the UK and overseas. As of September 2020, it had gross and net assets of £81.6m and £17.2m respectively
Andrew Ross, partner at Endless added: "We are delighted to be backing Chris, Mark, Martin and the entire Findel Education team to deliver our exciting shared vision for the business and look forward to working closely with them in the coming years.
"We would also like to thank Studio Retail Group for the support they have given Findel Education during their ownership"
