The supermarket giant asserted that the move to sell Argos will transform Sainsbury's long-term
Sainsbury's has confirmed plans to sell its Argos business as part of a deal worth at least £120million.
According to the supermarket giant, the sale will allow the retailer to focus on its core food business and Next Level Strategy.
In a statement, Sainsbury's claimed this was to create "a simpler business with higher margins and higher growth".
Simon Roberts , the chief executive of J Sainsbury plc, said: “Sainsbury’s has transformed Argos into a leading multichannel retailer with millions of customers and thousands of talented colleagues.
"As we have strengthened our core food business, we have carefully considered what it will take to create the strongest possible future for Argos."
Notably, Swift Partners is a new company started by Richard Pennycook, Trevor Strain and Matt Truman purely for this sale, alongside True Capital.
While the deal is subject to regulatory oversight, Sainsbury's shared it expects the acquisition to be completed by February 2027.
Mr Roberts added: "I would like to thank Argos colleagues for all of their commitment and hard work. Today is an important next step in building the strongest future for Argos and I would like to reassure our colleagues, customers and suppliers that it’s business as usual.
“For Sainsbury’s, this isa further step forward in our strategy. Having rebuilt the core strengths of our food business, this agreement allows us to focusall our resources and investment on the significant opportunities ahead."
Mr Pennycook shared: "What attracted us to Argos is the strength of the business, with a trusted brand, loyal customers and dedicated colleagues. We believe strongly in Argos's future and see real opportunities to invest and build on its progress.
"Argos's combination, of a strong digital business supported by standalone stores, stores inside Sainsbury’s and Local Fulfilment Centres, gives it a distinctive position in the market and an excellent platform for growth.
"We hold Argos senior management in high regard and plan to build on its strengths, bringing additional experience and skills to complement and augment the existing team.
"We see clear potential to strengthen Argos’s customer proposition, digital capabilities and nationwide reach."
The high street supermarket chain bought the retailer on September 2, 2016 when Sainsbury's completed its £1.4billion takeover of Home Retail Group, the then-parent company of Argos.
As it stands, Sainsbury's expects to deliver total underlying operating profit of between £975million and £1.085billion, with retail free cash flow projected to exceed £500million for the full financial year of 2027.
