Tesco completes sale of Dobbies Garden Centres for £217m

Tesco has announced the sale of its Dobbies Garden Centres business to an investor group led by Midlothian Capital Partners and Hattington Capital.

The supermarket chain is set to receive £217m in cash for the sale of the entire share capital of Dobbies Garden Centres Ltd.

Tesco bought Dobbies Garden Centres in 2007, and since then it has grown to become the UK’s second largest specialist garden centre retailer, operating 35 garden centres across Scotland, England and Northern Ireland.

Dave Lewis, Tesco chief executive, 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, added: “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.”