The sale represents the entire share capital of Dobbies Garden Centres Ltd. Tesco will receive £217m in cash, which will be used for general corporate purposes.
Tesco bought Dobbies Garden Centres in 2007, and since then it has grown to become the UK’s second largest specialist garden centre retailer, operating 35 garden centres across Scotland, England and Northern Ireland.
This means Wyevale Garden Centres misses out on buying the group, as they had been expected to do. Initial bidding began at £175m.
Barney Burgess of Hattington Capital was previously a commercial director at Tesco in the UK and also spent five years operating the supermarket’s home delivery service through Tesco.com.
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 and Barney Burgess, of Midlothian Capital Partners and Hattington Capital respectively, said:
"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."