The Belgian Louis Delhaize group has sold its British Garden and Leisure chain to The Garden Centre Group, lifting the latter’s number of stores to 139. Louis Delhaize still keeps Truffaut, a French chain of garden centres.
Low profitability cause for sale
Louis Delhaize used its French subsidiary Truffaut in 1997 to get into Garden and Leisure, turning the chain into one of the UK’s largest garden centres. Nevertheless, it was not a success, as it proved difficult to get a decent profitability, leading to several years of rumours of a possible sale.
Investment group Terra Firma, owners of The Garden Centre Group, managed to reach an agreement with Louis Delhaize for the British chain of garden centres. It is not the first acquisition for The Garden Centre Group this year, as the company had bought the Bolton Garden Centre in June and had Cheddar Garden Centre and Lechlade Garden Centre only recently.
The Garden Centre Group feels that the Garden and Leisure garden centres match well with its other centres, with 90 % of its Garden Centre products coming from British soil.