Tesco confirmed today that it has sold Dobbies Garden Centres - but not to Terra Firma or Edinburgh Woollen Mill owners as rumoured.
An investor group led by private equity firms Midlothian Capital Partners and Hattington Capital was selected by the supermarket as the garden centre chain's new owners. Tesco will received £217m cash for the business.

Chief executive Dave Lewis said: "Through their hard work and dedication to customer service, Dobbies colleagues have built a great business, and I would like to thank them for everything they have done.

"It was a difficult decision to sell the business, but we believe this agreement will give Dobbies a bright future, while allowing our UK retail business to focus on its core strengths."

Dobbies, which employs more than 2,700 workers, was first acquired by Tesco in 2007, but has suffered some financial losses in recent years. The chain has 35 stores across the UK, second only to Terra Firma's Wyevale centres.

In a joint statement, Midlothian Capital Partners' Andrew Bracey and Hattington Capital's Barney Burgess said: "We are delighted to have been chosen by Tesco to take ownership of the Dobbies Garden Centres business.

"It is a great business with fantastic colleagues. We're very optimistic about the potential of the business, and we look forward to growing the business across the UK from its base in Scotland."

Mr Burgess has experience within the Tesco, having been a commercial director there, while Mr Bracey was formerly a chief financial officer of Ocado before founding Midlothian Capital Partners.