Blue Diamond, the UK’s largest garden centre business, is planning to raise a £60 million investment from Caledonia Investments.
The company is set to accelerate its growth following the investment.
Caledonia’s backing will enable the garden centre giant to “realise its ongoing ambitions while maintaining a conservative balance sheet,” according to the business.
Beyond the investment announced today, Caledonia has agreed, subject to customary conditions, to make up to £40 million of additional capital available to support Blue Diamond’s development over the next five years.
The investment trust has also agreed to provide current shareholders with further share buy-backs.
Related Story
Caledonia will become a 16 per cent minority shareholder in Blue Diamond, with the partnership bringing the prospect of further investment.
The investment is subject to the garden centre retailer’s shareholder approval at its AGM on 2 July.
Blue Diamond Group CEO Alan Roper said: “We are delighted to welcome Caledonia as an experienced long-term partner, at an exciting point in Blue Diamond’s development.
“We are ambitious to seize the significant opportunity we see in the garden centre sector.”
He continued: “Caledonia’s support will enable us to pursue the next phase of our growth without compromising the financial and operational discipline that has always been so crucial to our success.
“We also welcome the chance to provide our current shareholders with a liquidity opportunity that rewards their patience and support to date.”
Head of Caledonia private capital Tom Leader added: “Blue Diamond is exactly the type of business with which we look to partner: a clear market leader with an outstanding management team delivering excellent cash generation which can be re-invested to grow the business.
“We are delighted to be partnering with Blue Diamond and look forward to supporting the company through its next phase of growth.”
Click here to sign up to Retail Gazette‘s free daily email newsletter
