Polar Capital Limited signed a conditional agreement to acquire Smiths City Finance and certain stores from Smiths City Group Limited (NZSE:SCY) for a transaction valued at NZD 60 million on May 18, 2020. The transaction values the assets to be transferred to Polar Capital at around NZD 60 million, however with the purchaser assuming some debt and other liabilities, the net amount expected to be received is NZD 8 million. The sale involves the acquisition of all of Smiths City Finance and the great majority of Smiths City’s stores. Approximately seven of the Smith City's 29 stores will not be acquired under the transaction and will close as a result of the Group’s strategic review. The final number of stores to be sold is dependent on the lease transfers and new lease terms being agreed for those transferring stores. In addition to acquiring the stores Polar Capital has also committed to taking over certain other liabilities. These liabilities include commitments Smiths City has made to customers that have paid deposits for, or are awaiting delivery of, goods. The conditional agreement also envisages offers of employment being made to approximately 75% of Smiths City’s 465 staff. The transaction is subject to Polar Capital securing financing for the acquisition and Smiths City shareholder and financier approval. The transaction is expected to close on May 22, 2020. Craig Armitage, Malcolm Hollis, and Wayne Munn of PwC acted as financial and commercial adviser to Smiths City. Polar Capital Limited completed the acquisition of Smiths City Finance and certain stores from Smiths City Group Limited (NZSE:SCY) on May 23, 2020.