Secure Trust Bank Commercial Finance (STB CF) has extended a £50m asset-based lending facility for Modella Capital’s acquisition of WH Smith’s UK High Street operations.

The funds will support the business’s working capital needs as it embarks on a new strategic phase under Modella Capital, which includes rebranding its 464 high street stores as ‘TG Jones’.

Founded in 1792, WH Smith will continue operating its travel shops in railway stations, airports, and hospitals, as well as its international businesses, under its existing brand.

The newly branded TG Jones high street operation aims to refine its retail offering, improve efficiency, and seek growth opportunities with support from Modella Capital and its financial partners.

This deal reflects increased retail merger and acquisition activity for STB CF, which previously aided Modella Capital in acquiring Hobbycraft.

In January 2024, the bank also provided financing to Ann Summers for its online growth. STB CF’s focus on private equity partnerships is evident, with ten deals completed across eight sponsors last year, compared to six the year before.

STB CF regional sales director Tony Young said: “Having worked with Modella Capital previously, we’re proud to once again support the team on this high-profile transaction.

“This deal demonstrates the strength of asset-based lending in enabling strategic private equity acquisitions and providing ongoing operational support, and it’s great to continue adding to our portfolio of retail deals.

“We look forward to continuing our partnership with Modella Capital and the management team as they continue to drive the business forward under the TG Jones brand.”