Supermarket giant Tesco is reportedly among the potential bidders for Garden Centre Group (GCG), which has been put up for sale by financial group Lloyds.
According to the Sunday Times, Lloyds – which is partly owned by the British taxpayer – is to officially launch an auction this week. The bank took control of GCG two years ago and is believed to be seeking around £300 million for the company.
Prospective buyers will receive sale documents over the next few days and early negotiations are thought to have taken place. Private equity houses are also understood to be weighing up possible bids for GCG, which owns brands including Blooms, Woodlands and Wyevale.
Tesco entered the gardening market by acquiring Dobbies Garden Centres three years ago. Dobbies, which currently owns a total of 26 outlets across the UK, is aiming to open another 100 stores and increase its turnover to £1 billion by the end of the current decade.
Last month, Tesco announced plans to exit the Japanese retail market in favour of concentrating on its struggling Fresh ‘n’ Easy business in the US.
