Tesco has confirmed the sale of its Dobbies Garden Centre division to an investor firm.
The business has been sold to a group led by Midlothian Capital Partners and Hattington Capital for £271m in cash which will be used for general corporate purposes. The sale represents the full share capital of Dobbies Garden Centres Ltd.
The big four grocer bought Dobbies Garden Centres in 2007 and has grown to become the UK's second largest garden specialist retailer since then. The Dobbies estate comprise of 35 garden centre stores across Scotland, England and Northern Ireland.
Tesco continues to offer a wide range of Home and Garden products through its own stores and online.
“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” said Tesco Chief Executive Dave Lewis
“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” added Andrew Bracey and Barney Burgess, of Midlothian Capital Partners and Hattington Capital.
Last week the supermarket chain also disposes of its Giraffe restaurant chain to Harry Ramsden owner and sold its Turkish business.
The disposals reflect Dave Lewis' attempts to turnaround and focus on the core business after years of decline.