Tesco weeds out Dobbies Garden Centres chain in £217m deal
Tesco has sold Dobbies Garden Centres for £217 million as the grocery giant continues to shift focus back to its supermarkets by offloading non-core assets.
Dobbies, the UK's second largest garden retail chain, has been snapped up by investors led by Midlothian Capital Partners and Hattington Capital.
Tesco chief executive Dave Lewis said: "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."
Tesco acquired Dobbies in 2007 during a period of rapid expansion under Sir Terry Leahy.
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.
Andrew Bracey and Barney Burgess, of Midlothian Capital Partners and Hattington Capital, said: "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."