Wyevale has agreed the sale of another 31 of its gardening centres as part of its recent strategy to trim down its estate amid moves by its private equity owner Terra Firma to offload the business.
Dobbies, the Scottish garden centre firm once owned by Tesco, has bought the sites for an undisclosed sum. The deal almost doubles its portfolio to 69 outlets, making it the largest garden centre chain in the UK.
The move marks Wyevale’s third transaction with Dobbies following the sale of five centres and single site sale to the retailer last October.
The latest transaction means Wyevale has now offloaded a total of 85 sites to various businesses since it first announced its restructuring plan last year. However, the group stressed that it remains a top three gardening retailer in the UK with 60 centres and a further four centres that are operating under licence.
The news was accompanied by a first quarter trading update from Wyevale which stated that its sales were up 26% year-on-year and profitability had “significantly improved”
Wyevale Chief Operating Officer Anthony Jones said: “I am delighted with our strong start to the year and am excited about trading for the rest of the main gardening season.”
However, he added that the group was also continuing to evaluate a “wide range of options as part of our ongoing sale process.”
Wyevale also announced that it has begun a collective consultation process with staff at its Syon Park customer support centre as it looks to reduce the number of roles at the centre by at least 20.
Commenting on its acquisition, Dobbies Chief Executive Graeme Jenkins said: “We look forward to welcoming our new customers, as well as 1,400 new team members to Dobbies as we drive the growth of the business and deliver against our strategic plan.”
The 31 Wyevale garden centres that have been sold to Dobbies are: Altrincham, Andover, Beaconsfield, Brighton, Bury St Edmunds, Cadnam, Findern, Galton, Gosforth, Hare Hatch, Harlestone Heath, Havant, Hungerford, Keston, Leicester Rowena, Lelant, Marple, Moreton Park, Northampton, Pennine, Poppleton, Royston, Rugby, Shenstone, Stratford upon Avon, Stockton, Swansea, Swindon, Telford, Thornbury, and World’s End.
