Connect Group disposing Books division

Logistics company Connect Group has announced it is to dispose of its Books division. This will allow the company to focus on the integration of its core businesses that include Smiths News, Tuffnells Parcel Express and Pass My Parcel.

Connect Group have released a statement that it has signed an agreement with Aurelius Equity Opportunities to dispose of its Connect Books for a total cash consideration of up to £11.6m.

Mark Cashmore, Chief Executive Officer, commented: “Earlier this year we concluded that the Books division was no longer core to our future, but this in no way detracts from its position as leader in the books distribution markets. We believe the agreement represents a good outcome for all key stakeholders.

“The disposal is consistent with our strategy to focus on opportunities in Early Morning and Mixed Freight distribution. In this regard, the integration of the Group’s businesses is proceeding at pace and the disposal will give us greater financial flexibility as we continue to drive our strategic priorities.

“Looking ahead, the Group remains focused on delivering long-term value for shareholders, focusing and leveraging our capabilities to deliver sustainable growth, strong cash generation and dividend. “