Key facts
- Sainsbury's has agreed to sell its Argos business.
- The sale price is at least £120 million.
- The buyer is a new company backed by private equity firm True Capital.
- The move is part of Sainsbury's strategy to focus on its core food operations.
Sainsbury's has agreed to sell its catalogue retailer Argos to a private equity-backed consortium for at least £120 million. The supermarket giant stated the sale will enable it to focus on its food business and deliver higher cash generations and healthier margins. Sainsbury's bought Argos a decade ago, but the retailer has long dragged on the supermarket's profits. The new company acquiring Argos will be led by On the Beach chairman Richard Pennycook and former Morrisons boss Trevor Strain, with backing from private equity firm True Capital. Sainsbury's CEO Simon Roberts said the company has transformed Argos into a leading multichannel retailer and that the agreement allows Sainsbury's to focus all resources on future opportunities. Argos operates through 201 standalone stores, 466 outlets within Sainsbury's supermarkets, and 466 collection points, totaling 1,133 points of presence.