Midlothian, Hattington-led investor group to pick up Tesco’s Dobbies Garden for £217m

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garden-gardening-1290801_640UK retailer Tesco is selling its Dobbies Garden Centres subsidiary for £217m to a group of investors led by buyout firms Midlothian Capital Partners and Hattington Capital.

A holding company owned by the private equity firms as well as a number of family offices and individual investors will acquire the garden supplies chain on a cash and debt free basis.

Dobbies currently operates 35 garden centres across Scotland, England and Northern Ireland.

The new owners have committed to invest in the long-term growth of the business and expand it further throughout the UK, keeping the head office in Lasswade, Scotland.

Commenting on the deal, Andrew Bracey of Midlothian, said, “Dobbies is an iconic brand and we believe that Dobbies can be the market leader in the garden centre sector.

“It has a superior team that, with our long-term vision and capital, will grow this business across Britain.”

Barney Burgess, of Hattington, added, “The prospects for Dobbies are excellent: it has significant potential for growth in an under-served and under-developed sector.”

Bracey, Burgess as well as Aidan Clegg and Neil Currie of Midlothian, and Frederick Goltz of Hattington will join Dobbies board as part of the deal.

Ares Capital Partners has provided financing for the transaction.

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