Tesco sells Dobbies chain for £217m
Tesco has sold Dobbies Garden Centres, including its site at Bayston Hill Nurseries, Shrewsbury, for £217 million.
The grocery giant continues to shift focus back to its supermarkets by offloading non-core assets.
Dobbies, which is the UK's second largest garden retail chain, has been bought by investors led by Midlothian Capital Partners and Hattington Capital.
Tesco said the cash will be used for general corporate purposes.
Tesco had bought Dobbies Garden Centres in 2007 during a period of rapid expansion under Sir Terry Leahy.
Dobies now operates 35 garden centres across Scotland, England and Northern Ireland.
Tesco 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. 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 of Midlothian Capital Partners and and Barney Burgess, Hattington Capital, said in a joint statement: "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 said that it will continue to offer customers a wide selection of home and garden products through its own stores and online.
Dobbies Garden Centres made a contribution of £17m to Tesco's reported profit before tax for the year to February 27.
Last week Tesco sold off the Giraffe restaurant chain to Harry Ramsden owner Ranjit Boparan and also offloaded its Turkish operations.
The disposals represent a continued shift in strategy under chief executive Dave Lewis, who is attempting to turn Tesco around after years of decline under previous management.
There were reports in April that rival garden centre chain Wyvale was considering a bid for Dobbies which sparked fears for the 180 staff at Dobbies head office in Edinburgh and also for staff at garden centres in areas where the two were in direct competition.
