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Business

Tesco sells Dobbies Garden Centres for £217 million

By: Chris Price

Published: 09:00, 17 June 2016

Updated: 09:22, 17 June 2016

Tesco has sold its Dobbies Garden Centres for £217 million.

The supermarket giant bought the business in 2007 and has grown it to become the UK’s second largest garden centre retailer.

It has 35 stores across England, Scotland and Northern Ireland, including off Bowater’s roundabout in Gillingham and at Eureka Leisure Park in Ashford.

Dobbies garden centre at Eureka Leisure Park in Ashford

The centres made a £17 million contribution to Tesco’s pre-tax profits in the year to February and has gross assets of £255 million.

The sale to an investor group led by Midlothian Capital Partners and Hattington Capital comes as Tesco continues to focus on its supermarket activities.

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It comes a week after it announced it is offloading restaurant chain Giraffe and its Turkish business.

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.

Tesco has sold its Dobbies garden centres business

“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 offer customers a wide selection of home and garden products through its own stores and online.

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