Tesco to Sell Dobbies Garden Centres for GBP217 Million

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 [e-mail]; @IanWalk40289749

(END) Dow Jones Newswires

June 17, 2016 02:40 ET (06:40 GMT)

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