Sainsbury‘s agrees sale of Argos to Swift Partners; Expect shares to re-rate

研报英文原文证据摘录

Sainsbury‘s agrees sale of Argos to Swift Partners; Expect shares to re-rate

C A Z E N O V E Europe Equity Research

31 July 2026

Sainsbury Overweight

SBRY.L, SBRY LN

Sainsbury's agrees sale of Argos to Swift Partners; Price (30 Jul 26):356p

Expect shares to re-rate Price Target (Feb-28):358p

Strategic rationale. This morning, Sainsbury’s announced (link) the sale of Argos European Food Retail

ACto Swift Partners (a newly established investment vehicle with backing from True Borja Olcese

Capital). Swift is expected to build on the strength of the Argos brand, multichannel (34-91) 516-1511

model and store network, bringing expertise and investment to accelerate growth borja.olcese@jpmorgan.com

and innovation in a fast-moving and competitive general merchandise market. This J.P. Morgan Securities plc

aligns well with management’s strategy to simplify the group and focus entirely on Specialist Sales contact details:

its core food business. Financial impact. From a financial standpoint, the

Olivia Petronilho - Specialist Sales -transaction is expected to generate cash proceeds of at least £120m, including c European Consumer

£70m at completion (expected February 2027) and £50m defered over three years (44-20) 3493-3709

as full separation is expected by February 2029. Net debt will also be reduced by olivia.b.petronilho@jpmorgan.com

c£250mn. Final cash proceeds are subject to working capital adjustments and Style Exposure

expected to be offset by separation costs. With this, SBRY reiterated its FY outlook

of underlying EBIT of £975-$1,075m and retail FCF of more than £500m (note

Argos underlying EBIT in FY26 was £9m). Per the company, this would have LSD

% underlying EPS accretion. Who are Swift? Swift Partners (”Swift”) is a new