WH Smith is concentrating on its retail and news distribution assets

Hachette Livre will pay �210m in cash as well as taking on Hodder Headline's pension deficit, estimated at �13m.

Chief executive Kate Swann said the sale would help "simplify" the group.

WH Smith, which is the midst of refurbishing its stores, also said it would return �207m to shareholders, or approximately 85p per share.

The sale of Hodder Headline was an important milestone in WH Smith's strategy of simplifying the group's structure and focusing on its core retail and news distribution businesses, Ms Swann said.

Last week WH Smith said the revitalisation of its UK High Street stores was at the core of its turnaround strategy.

It also announced plans to make a one-off payment of �120m ($221m) to boost its pension fund.

Earlier this year, WH Smith admitted its performance was "unacceptable".

It recently saw off a takeover attempt from venture capitalists Permira.

Permira dropped its plans after failing to reach a deal with WH Smith's pension fund trustees, who had insisted on a cash injection of about �275m.