Lincolnshire-headquartered British Garden Centres is completing the takeover of a huge swathe of outlets from former rival Wyevale, after investors called time on the horticultural venture following a successful turnaround.
The family-owned business has acquired 37 locations in six separate transactions alongside Scottish operator Dobbies, which swooped for 37 others – making up the lion’s share of the 145 garden centres put on the market back in May 2018.
A further 16 centres were sold to Blue Diamond, with five centres bought by Hillier. The remainder of the portfolio was sold to smaller operators and independents, by investor-owner fund Terra Firma.
BGC, with its flagship site at Brigg, will use the additions as a springboard to enter the south, while bolstering its position elsewhere. Already a £33.5 million business, it is now looking forward to capitalising on economies of scale, with an investment and redevelopment programme in place for the acquisition spree.
Charles Stubbs, managing director of the Stubbs family-owned British Garden Centres, who first started growing then selling through a road-side stall, said: “This is a very exciting new chapter for British Garden Centres – this additional portfolio takes us to 49 centres and launches us in the south of England, making us a truly national operator.
“I have witnessed huge improvements at Wyevale Garden Centres over the last 18 months and I am therefore delighted to have acquired so many fantastic centres that in my opinion have never looked better.
“We look forward to welcoming our new colleagues and working with them as we transition these centres over to British Garden Centres and introduce our wonderful new ranges to further enhance the offer for customers.”
The centres to be taken on are in Braintree, Brockworth, Harrow, Osterley, Ramsgate, Sprowston, Stanway, Stevenage, Tring and Wimborne.
Most Read
Pan-Humber law firm Andrew Jackson Solicitors acted for the team in the undisclosed deals.
Andrew Funnell, partner and head of corporate, said: “It has been a pleasure to assist our clients with this exciting period of growth for their business, which saw our team undertaking corporate finance and property work to very tight timescales.
“Building on the strong organic growth which Charles, Robert and Phillippa have delivered, a year ago Charles saw an opportunity for a period of rapid growth by acquiring a significant number of new centres from Wyevale.”
Mr Funnell was assisted by Nick Scott, Daniel Hammond and Adrian West, and the team at Andrew Jackson worked closely with Steve Czornyj and Lee Bradbury of Forrester Boyd chartered accountants.
Mr Stubbs added: “Myself, Robert and Phillippa, and all of the team, are looking forward to maximising the great potential that each of the new centres brings.
“We are delighted with the successful outcome of these acquisitions and we are very grateful to all involved. The teams at Andrew Jackson and Forrester Boyd have provided us with valuable, commercial advice at every stage of the process.”
Earlier acquisitions from Wyevale have included Albrighton, Bold Heath, Bolton, Bournville, Bressingham, Carrgate, Coventry, Gardenlands, Hemel Hempstead, Horncastle, Leyland, Louth, Tarporley and Wolseley Bridge.
Strong final flourish from Wyevale
Don’t miss
Wyevale enjoyed an exceptional spring season, with record breaking sales, and has continued to trade favourably in recent months, departing bosses said.
Justin King, executive chairman of Wyevale Garden Centres, said: “In May 2018 we said it was the right time to launch a sales process for WGC following a large number of improvements made to the business under the new leadership team, resulting in our centres looking and performing better than ever.
“Our focus was on seeking new long-term owners for the centres and running the process in a way which protected and supported all our stakeholders, including WGC colleagues, while maximising returns for our shareholder. I am delighted that we have succeeded in that goal with the vast majority of centres and colleagues remaining within the sector and customers now benefitting from a wider choice of garden centre operators.
Anthony Jones, chief operating officer, who was singled out for praise by Mr King and Mr Stubbs, said: “As we move to the conclusion of this complex sale process, I want to pay tribute to everyone at WGC for their tremendous support and hard work. Their expertise combined with a tireless dedication and commitment to delivering for both customers and their fellow colleagues during this period of great uncertainty has been phenomenal.
“I am extremely proud that the outcome of the sale means over 90 per cent of the centres sold will remain within the sector, and over 95 per cent of garden centre colleagues will transfer to garden centre operators.”