Asda has agreed to sell its photo division to Photo-Me for around £5.35m, the UK-listed photo company announced this morning.

The supermarket’s photo division consists of 191 photo centres, as well as 172 self-service kiosk sites located in Asda stores. These businesses will be managed by Photo-Me under a ten-year concession. As part of the Acquisition the employees of the photo division will transfer across to Photo Me.

Photo-Me will also operate the Asda-branded online photo-processing offering for a minimum of 2.5 years.

Photo-Me will pay £3.35m for the division, subject to downward adjustment in “certain circumstances” and has also agreed to buy the inventory available at each photo centre and central stock for around £2m.

In the calendar year 2015, Asda’s photo division generated unaudited sales of circa £19.3m and made an unaudited loss of £3.4m.

Completion of the acquisition is currently expected to take place on 31 October 2016.