Tesco to Sell Dobbies Garden Centres for GBP217 Million
17 Juni 2016 - 8:55AM
Dow Jones News
LONDON--Tesco PLC (TSCO.LN) said Friday it is selling its
Dobbies Garden Centers business for 217 million pounds ($309.36
million) in cash, just a week after announcing the sale of Turkish
supermarket chain Kipa and the Giraffe U.K. restaurant chain, as
the grocer continues to focus on its core grocery operations.
Tesco, the U.K.'s number one grocer by market share, is selling
Dobbies to an investor group led by Midlothian Capital Partners and
Hattington Capital, after nine years of ownership. However, Tesco
said it will continue to offer customers a wide selection of home
and garden products through its own stores and online.
Last Friday, Tesco said it was selling its 95.5% interest in
Kipa to Turkish grocer Migros for around GBP30 million, which is
expected to cut its debt by around GBP110 million.
Tesco is selling the Giraffe restaurant chain to Harry Ramsden
fish and chip shop and brand owner Boparan Restaurants Holdings for
an undisclosed sum.
Dave Lewis, who became Tesco's CEO in 2014, has moved to cut
costs, shed non-core assets and simplify Tesco's range and store
operations. A former Unilever PLC executive whose background is in
building brands, Mr. Lewis recently unveiled a new range of
lower-priced "Farm" brands in a bid to compete directly with
discounters Lidl and Aldi.
Tesco has also already sold 8.6% of its stake in Asian ecommerce
platform Lazada Group SA to Alibaba Group Holding Ltd. for $129
million and announced it was shuttering its health business
Nutricentre.
Tesco bought Giraffe in March 2013 for GBP48.6 million and Kipa
in November 2003 for GBP75 million.
Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
(END) Dow Jones Newswires
June 17, 2016 02:40 ET (06:40 GMT)
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