Tesco Gets Dobbies

UK supermarket chain Tesco has agreed to buy Dobbies Garden Centres for Gbp155.6m ($307m).

The offer of 1,500p per share sees Tesco agree a recommended offer following widespread speculation that private equity firm Apax and investment firm West Coast Capital were interested in bidding for Dobbies.

Tesco has already contracted to acquire and has options to acquire a 22.6% stake in the Scottish target and has received irrevocable commitments over a further 2.7%.

Sir Terry Leahy, Tesco's chief executive, said the acquisition is part of the group's strategy to provide customers with greater access to affordable energy saving and environmental products.

“Tesco has a proven track record of growing businesses, product innovation and improving our offer to customers internationally,” he added. “With our backing and support, the management team will invest in the development of Dobbies in order to realise more quickly its full potential, create value for shareholders and grasp the opportunities offered by a shift towards green consumption.”