08 Jun 2007


Print	Email

Tesco to buy Dobbies Garden Centres

Tesco

gardening

Tesco has agreed to take over Dobbies Garden Centres in a £155.6m deal and plans to roll it out into a national chain.

Midlothian-based Dobbies has 21 stores, mainly across Scotland and the North of England, and more than 1,500 employees.

Tesco said the acquisition was in line with its strategy of improving and expanding its offering to UK customers.

Chief executive Sir Terry Leahy said: “The increasing popularity of gardening, and in particular the trend towards environmentally friendly products, makes this an attractive sector for Tesco to invest in.

“The deal is an important part of our strategy to provide customers with greater access to affordable energy saving and environmental products.”

He added: “With our backing and support, the management team will invest in the development of Dobbies in order to realise more quickly its full potential.

Alex Hammond-Chambers, chairman of Dobbies, said: “Together we can develop our store portfolio, supply chain, systems and on-line business and over time offer customers a wider range of products at keener prices.

Tesco said it believed the Dobbies model could be turned into a nationwide business.

Dobbies also today announced its interim results for the six months to 30 April, reporting sales of about £40m and pre-tax profits of about £2.5m.

Email this to a friend