Dobbies, the Tesco-controlled garden centre group, has bought Sandyholm Garden Centre in Crossford, Lanarkshire, for £8 million plus stock.

Last year, Sandyholm, a 36,000 sq ft (3,345 sq m) freehold centre on a 9-acre site, generated sales of£5.8 million and delivered a net profit of£1.1 million.

Dobbies – which remains listed on AIM despite Tesco’s stake – expects the deal to enhance earnings per share, excluding acquisition costs.

Dobbies chief executive James Barnes said: “This acquisition is consistent with our strategy of owning large freehold garden centres, which will add value to our portfolio and overall business.”

Garden centres have become an increasingly competitive retail sector following a raft of deals in the past few years. Market leader Wyevale was acquired by tycoon Sir Tom Hunter, who made a failed attempt to resist the takeover of Dobbies, in which he retains a stake, by Tesco.

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