The future of Wyevale’s Sanders Garden World near Burnham-On-Sea is uncertain after the chain’s 145 garden centres across the UK went on sale this week.
Wyevale, the country’s largest garden centre operator, has been put up for sale by investment group Terra Firma, with the sale of its garden centres.
In our area, Wyevale runs Sanders Garden World in Brent Knoll and Cheddar Garden Centre.
Christie & Co, the specialist business property advisor, has been appointed to explore a range of sales options for the business, from a sale of the whole business to individual garden centres.
It says the centres are “expected to be attractive to a wide range of buyers”, from financial institutions through to existing garden centre operators and local entrepreneurs.
Sanders Garden World was built in 2001 and has been twice voted Garden Centre of the Year. In addition to a restaurant, it has a Costa Coffee cafe plus branded stores for Cotton Traders, Mountain Warehouse, Granite Transformations, Maidenhead Aquatics, Pet Zone and Edinburgh Woollen Mill.
The potential sale comes amid a ‘turnaround programme’ by Wyevle. The firm says it has has enjoyed “exceptionally strong” sales in recent weeks, with a record breaking May Day bank holiday weekend, the highest one-week sales ever and May on track to be the most profitable month in the company’s history.
Guy Hands, chairman and chief investment officer of investment company Terra Firma said: “The sale of Wyevale Garden Centres presents a unique investment opportunity for a range of potential buyers from strategic purchasers to local entrepreneurs.”
“As Terra Firma Capital Partners Fund III moves closer to maturity, and we reach an advanced stage of the Wyevale Garden Centres turnaround, now is the right time to put the business up for sale. In Christie & Co, we have appointed a partner who will run a creative sales process, exploring all options in order to fully maximise value for our fund investors.”
Terra Firma bought the business for £276m in 2012. The private equity firm has tried to sell Wyevale before, at prices up to £700m.
Wyevale negotiated £100m refinancing in September 2017 and announced its results for 2016, which showed a £122m loss. But Wyevale saw like-for-like growth from June 2016 to the end of 2017 and says May will see the business return to 12-month growth and profitability. Revenue was £328.3m for the financial year ended 25 December 2016, an increase of 5.5 per cent on the prior year.
Christies managing director retail Steve Rodell added: “The garden centre market is vibrant and on an upwards trajectory. In recent years garden centres have become much more than places just to buy plants, evolving to become wider leisure and retail destinations with play centres for children, restaurants and other activities designed to improve the shopping experience. These attractive consumer fundamentals with multiple income streams mean the market is likely to be resilient to headwinds experienced by the high-street.”
“The sale of Wyevale Garden Centres presents a unique opportunity for a wide range of buyers from financial institutions, existing garden centre operators, independent business people and entrepreneurs to buy well invested local garden centres within the price range of £200k to £35m.”
“Financial institutions will be attracted to a strong business that is a platform for consolidation of the sector. Entrepreneurs will be particularly attracted into a market with the prospect of enhancing an already resilient income stream by adding their own profitable activities into underutilised ancillary space which has a multitude of potential uses. Current garden centre operators seeking to compliment or improve their existing business will also be attracted to the disposal, as opportunities of this quality rarely come to the market.”
Roger Mclaughlan, Chief Executive of Wyevale Garden Centres, said: “Wyevale Garden Centres has transformed beyond recognition over the last few years, and our customers are responding really positively to all the improvements we’ve been making, with improved ranges, high stock availability and exceptional garden centre standards.”
