KEY POINTS:
Borders has sold its New Zealand bookstores to A&R Whitcoulls as part of a A$110 million ($138.9 million) deal.
In all, United States-based Borders is selling 30 "superstores" in this country, Australia and Singapore.
A&R Whitcoulls, owned by private equity firm Pacific Equity Partners, owns more than 260 stores including Angus & Robertson in Australia, and Whitcoulls in this country.
It would have the right to use the Borders brand throughout Australia, this country, and Singapore consistent with a brand licensing pact that was part of the agreement, Borders said.
A&R Whitcoulls managing director Ian Draper said the Borders assets were complementary to his company's existing holdings.
"Borders will bring a new dimension to our retail offerings. The customer-experience based model invites shoppers to browse with a vast range of books, music, movies and cafes in Borders stores," he said.
"This model has proven popular in the local market and will complement our existing presence by targeting a different demographic through the premium format and vast selection of products."
Borders Asia Pacific managing director John Campradt said ARW had welcomed the Borders management team, stores, and people, and would provide the support needed to drive profitable growth.
Borders Group chief executive George Jones said the businesses being sold had performed well.
"This transaction represents an attractive valuation, permits us to forgo further investment in these businesses, and provides our company with a significant cash infusion to further reduce debt, which is one of our key financial initiatives."
The transaction has been approved by the Commerce Commission in this country and the Australian Competition and Consumer Commission.
- NZPA
