News Flash

Marks & Spencer sells Kings for £35.4m

03 Apr '06

2 min read

High street retailer Marks and Spencer Group Plc has announced the sale of Kings Super Markets Inc ('Kings') to a US investor group consisting of Angelo, Gordon & Co ('Angelo Gordon'), MTN Capital Partners LLC ('MTN Capital') and Bruce Weitz for $61.5 million in cash (£35.4m).

Angelo Gordon and MTN Capital are co-sponsors and Weitz is the operating partner in the transaction. The transaction is expected to close by the end of April 2006.

For the year to 2nd April 2005, turnover of Kings was $405.9m (£219.8m) and operating profit was $7.9m (£4.3m). This compares to a turnover in 2004 of $403.2m (£238.8m) and operating profit of $4.2m (£2.4m). As at 2nd April 2005, net assets of Kings being disposed of, excluding cash, were $57.0m (£30.2m).

Ian Dyson, Group Finance Director, Marks & Spencer said, "The disposal of Kings is the last part of our programme to refocus Marks & Spencer. Kings is a strong brand with a committed workforce, but it doesn't fit within our core business. We wish them well under their new ownership."

M&S operates over 400 stores located throughout the UK; this includes their largest store at Marble Arch, London. In addition, the company has 150 stores worldwide, including over 130 franchise businesses, operating in 30 countries.

Marks and Spencer Group Plc

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