Terra Firma partially exits Wyevale Garden Centres

The GP is invested in the company via its third fund, Terra Firma Capital Partners III, a €5.4bn fund that held its final close in May 2007 and reported a net IRR of -10.5% in March 2018, according to an investor in the fund. Terra Firma has recently secured a 12-month extension to the vehicle's lifespan in order to facilitate the sale of remaining assets.

Of those centres sold, a portfolio of eight has been acquired by trade buyer Blue Diamond, while a further two have been sold to undisclosed buyers. Terra Firma said in a statement that it has received offers for all or part of the remaining business from various types of buyers.

The development comes two months after the GP mandated business property adviser Christie & Co to advise on the sale of Wyevale.

Previous funding
Terra Firma acquired Wyevale (then known as The Garden Centre Group) from Lloyds in a £276m EV deal in March 2012. The company underwent a refinancing last year, with a group of lenders including Hayfin, Barclays and Lloyds providing a £141.5m debt package.

Company
Wyevale was founded in 1932 and is headquartered in Brentford, Middlesex. Prior to the sale, the business operated 145 garden centres in England and Wales. It generated a turnover of £325m in 2016, according to publicly available documents, with EBITDA of £29.1m. The group has three sources of income: the sale of gardening and associated retail products; on-site food and beverage outlets; and lease income from concession space let to third-party retailers.

People
Terra Firma - Justin King (vice chair).

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