Marks and Spencer Group plc today announces 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 Mr. Bruce Weitz for $61.5 million in cash (£35.4m). Angelo Gordon and MTN Capital are co-sponsors and Mr. Weitz is the operating partner in the transaction.
The transaction is expected to close by the end of April.
For the year to 2 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 2 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."
