Midlands banks support £276m garden centres deal

BARCLAYS Corporate Banking division in the Midlands has supported private equity firm Terra Firma in the acquisition of The Garden Centre Group (TGCG).

TGCG, which was founded in Hereford, is being acquired for a total consideration of £276m which will be financed through a mixture of debt and equity, with the debt being arranged by a consortium of lenders: Barclays, Lloyds TSB and The Co-operative Bank.

TGCG is the largest specialist retailer of plants and garden care products in a £5bn market in the UK. It is also the only garden centre chain with national coverage through 129 centres and an e-tailing platform. Terra Firma plans to develop the group and has funds available for further investment in the business.

Commenting on the deal, Jim Quantrill of Barclays in Birmingham said: “We are pleased to support Terra Firma with this important acquisition. As a market leader with a clear strategic plan we believe there is an exciting future ahead for TGCG and Barclays is delighted to renew its acquaintance with the business and management team and be a key part of the group’s future.”

Guy Hands, chairman and chief investment officer of Terra Firma, said: “The Garden Centre Group has enormous potential, and we see considerable opportunity to help it grow through focussed, strategic investment.”

“Working with the management team, we want to establish TGCG’s centres as the UK’s favourite retail destinations for gardening and garden-related leisure.”