London-based WH Smith PLC announced Tuesday that it agreed to buy Jacksonville-based InMotion for $198 million in a deal expected to close by year-end.
President and CEO Jeremy Smith said InMotion will operate as a subsidiary, retaining its almost 800 employees systemwide and its 55 or so in Jacksonville.
InMotion, a “pure play travel retailer,” sells digital accessories such as headphones, earbuds, mobile power and portable speakers, among 114 locations in 43 U.S. airports, Smith said.
It was formed in 1998 and acquired in 2013 by Bruckmann, Rosser, Sherrill & Co. LLC and Palladin Consumer Retail Partners.
“We look forward to working with the CEO, Jeremy Smith, and his team to further develop both businesses across North America and other territories,” said WH Smith Group Chief Executive Stephen Clarke in the release.
“They viewed us as an attractive platform on which to the U.S. market,” Smith said. “And we are trying to expand internationally into the UK and Europe and they are based in London. It's a win-win for both teams,” he said.
Smith remains president and CEO of InMotion.
“We will continue to operate as we are today. We will be an operating subsidiary of WH Smith with no change in management or location,” he said.
InMotion is based in Southside's Center Point Business Park at 4801 Executive Park Court, Suite 100, off Philips Highway north of Butler Boulevard.
Smith expects to operate 117 locations by year-end.
WH Smith said InMotion's sales grew 13 percent year-to-date after growth of 12 percent in 2017. Sales are expected to end the year at $166 million.
WH Smith said the transaction “marks a significant step in WH Smith's international travel growth strategy.”
It considers the acquisition a platform that will allow it to expand its international travel business into “the world's largest travel retail market.”
WH Smith said the deal doubles the size of its international travel business.
Clarke said in the release the travel retail market in North America for digital accessories offers significant growth potential.
“As the market leader, recognized for its best-in-class customer service, InMotion is well-positioned to take advantage of that potential.”
The purchase also allows WH Smith to launch the airport format into the U.S. For news, books and convenience products.
Plus, it said the acquisition provides “significant potential to accelerate growth” outside of the U.S. using the InMotion format.
WH Smith was founded in 1972 and says it is one of the oldest chain stores in the world. It operates more than 1,400 stores worldwide with operations in 52 airports and across 28 countries outside of the U.K.
It has two businesses – Travel and High Street. The Travel business operates from 582 units in U.K. airports, railway stations, hospitals and other areas and 300 units outside of the U.K. Travel is two-thirds of the group's profits.
High Street operates from 607 stores to sell stationery, books, newspapers, magazines and other products.
The digital retail businesses sell across three websites at whsmith.co.uk, cultpens.com and funkypigeon.com.
WH Smith employs about 14,000 people, primarily in the U.K.