Investors in cash deal
Tesco sells Dobbies Garden Centres in £217m deal
The supermarket group said the proceeds will be used for general corporate purposes. Daily Business reported in April that it was planning to sell Dobbies which formed part of the previous regime’s plan to build a “family of businesses”.
Former chief executive Sir Terry Leahy bought Lasswade-based Dobbies in 2007, and since then has developed it into the UK’s second biggest specialist garden centre retailer.
Dobbies operates from 35 centres in Scotland, England and Northern Ireland.
Tesco Chief Executive Dave Lewis said: “Through their hard work and dedication to customer service, Dobbies colleagues have built a great business, and I would like to thank them for everything they have done.
“It was a difficult decision to sell the business, but we believe this agreement will give Dobbies a bright future, while allowing our UK retail business to focus on its core strengths.”
Andrew Bracey and Barney Burgess, of Midlothian Capital Partners and Hattington Capital respectively, said: “We are delighted to have been chosen by Tesco to take ownership of the Dobbies Garden Centres business. It is a great business with fantastic colleagues. We’re very optimistic about the potential of the business, and we look forward to growing the business across the UK from its base in Scotland.”
Tesco will continue to sell home and garden products through its own stores and online.
Dobbies Garden Centres made a contribution of £17m to Tesco PLC’s reported profit before tax for the year ended 27 February 2016.