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W H Smith Travel expands

19.03.08 Anna Richardson

W H Smith is expanding its travel division, with the acquisition of UNS Hospitals and a new franchise agreement with RoadChef.

The company bought UNS, which trades as United News and has 72 retail units and eight Caffe Nuovo coffee shops in 62 hospitals in the UK, for a cash consideration of £19m. The transaction will be funded from existing cash resources and available bank facilities. W H Smith currently has eight units trading in seven hospitals and expects exceptional integration costs to be around £1m in the current financial year.

W H Smith has also entered a franchise agreement with RoadChef to open travel units in all 29 RoadChef motorway service areas, following a successful trial at the Watford Gap RoadChef .

Kate Swann, W H Smith group chief executive, said: "The acquisition of UNS Hospitals creates further growth opportunities for our Travel business. The hospital channel is under developed and the combination of the experienced UNS management team and the W H Smith brand and offer will bring benefits for customers."

She added: "We look forward to working with RoadChef to extend our motorway service area offer, bringing WHSmith products and services direct to the motorist."

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