Growing spurt predicted after garden centre sale
Mar 19 2008 by Peter McCusker, The Journal
THE Newcastle advisers on the sale of Heighley Gate, the North East’s largest independent garden centre, say they are buoyant about its potential as part of one of the UK’s leading garden centre groups.
The garden centre, employing 190 staff near Morpeth, Northumberland, was sold last month by the Lishman family for an undisclosed sum following an approach by Scottish-based company Wyevale.
The sale represents the end of an era for the family who established the garden centre in 1963, but Shawn Bone of BTG McInnes believes the deal gives the business a new lease of life.
He said: “The Heighley Gate deal came as consolidation and investment in the sector has reached a new peak. I would expect the industry’s biggest players to take garden retailing to a whole new level with massive investment.
“The huge sums of money behind the big players have come as large corporates such as Tesco and big private equity players, notably Sir Tom Hunter’s West Coast Capital fund, have become very interested in the sector through their ownership of Dobbies and Wyevale.
“Now the best independents like Heighley Gate risk being left behind in investment terms, unless they can become part of the revolution in this retailing sector.”
The £9m turnover Heighley Gate business attracted around one million visitors to its 40-acre site last year. The centre now has a restaurant, furniture store and play area.
Mr Bone added: “I would expect further consolidation in the sector. Owners are beginning to appreciate, just like the Lishmans, that selling is actually consistent with development of their businesses and provides more opportunity for their staff and customers alike.
“The family understood that Heighley Gate needed to be taken to the next level and in many ways Wyevale, given its scale, access to capital and experience of garden centre development was the natural buyer.
“Given Wyevale’s plans for its own business and now Heighley Gate, the deal should be very much in the interests of staff and customers.” Other advisers to the vendors included Sintons law firm and accountants Stokoe Rodger. BTG McInnes Corporate Finance team included Shawn Bone, Mark Irving and Phil Williams.
Alan Dawson, partner at Sintons Solicitors, said: “Sintons have been advising two generations of the Lishman family for more than a quarter of a century, and to see Heighley Gate develop so well has been tremendously satisfying.
“Very often, we’ve discussed issues sitting around their farmhouse table well into the evening. I admire the huge amount of hard work and financial investment they put in.”
