WH Smith said today it will sell its poorly performing newspaper distribution arm, which had contributed to a slight drop in group first-half profit.
A deal is expected to be done by August, the company said. Analysts believe it could raise around £200 million to £250 million sterling to expand its retail and publishing businesses.
The disposal of WH Smith News had been expected since the start of the year. Profits from the division, Britain's largest wholesaler of magazines and newspapers, were £12 million in the first half of the year - down £6 million from last year.
The unit had spent much of last year in a dispute with publishers over its plans to restructure the business and implement a national distribution system with Tesco.
The strength of opposition led WH Smith to abandon its plans, costing it £4 million in six months and convincing it that its future lies in its more successful retail businesses in Britain and the US.