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Sainsbury’s agrees to sell Argos for £120m to Swift Partners

The acquisition will be handled through a new buyer vehicle, Swift Partners, set up by former Co-operative and Morrisons executives.

Reported · Written up by our desk · M&A & Deals

Sainsbury’s has agreed to sell the Argos retail chain for £120m, in a deal designed to let the supermarket focus on its core food business, according to the Guardian Business.

The catalogue retailer will be bought by Swift Partners, a new company formed for the transaction by Richard Pennycook, alongside former Morrisons executive Trevor Strain and Matt Truman. Sainsbury’s chief executive Simon Roberts said the move will mean “business as usual” for staff, customers, and suppliers.

Pennycook said the partners believe in Argos’s future and see opportunities to invest and build on its progress, citing Argos’s digital offering backed by standalone stores, locations inside Sainsbury’s, and local fulfilment centres.

The transaction follows Sainsbury’s purchase of Argos in 2016 as part of the Home Retail Group deal valued at £1.3bn. The Guardian Business noted Sainsbury’s had aimed to create a combined food and non-food retailer, but has faced pressure from tight margins as consumers curb spending during the cost of living crisis.

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