Sainsbury’s has agreed to sell its Argos business to Swift Partners in a deal worth at least £120 million.

The grocery chain said the firm will buy Argos standalone stores, as well as its stores within Sainsbury’s shops, on a long-term agreement, including logistics network, pet insurance and product warranty cover.

Swift will also buy Sainsbury’s distribution centre in Daventry and Sainsbury’s sourcing offices located in Shanghai and Hong Kong as part of the deal.

Swift is a new firm set up by retail experts including former Co-operative Group boss Richard Pennycook, former Morrisons chief operating officer Trevor Strain, and backed by Matt Truman and his retail investment and advisory firm, True Capital.

Sainsbury’s will get cash proceeds of at least £120 million from the sale, with a £70 million up-front payment when the deal completes, which is expected in February next year.

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