Caledonia to invest £60m in garden centre operator Blue Diamond

(Sharecast News) - Caledonia Investments on Wednesday said it had agreed a £60m financing deal with garden centre operator Blue Diamond.

The investment will be made up of £40m to support future growth initiatives and the rest to facilitate shareholder liquidity. Following completion, Caledonia will hold a fully diluted minority shareholding of approximately 16%.

Caledonia and Blue Diamond have also agreed a framework to make up to £40m of extra capital available to Blue Diamond over the next five years, for acquisitions, investment in the existing garden centre estate and shareholder liquidity.

Founded in Guernsey in 1904, Blue Diamond's operations now span gardening, home and leisure, and food and hospitality at 54 garden centres across the UK and Channel Islands.

It generated revenue of around £395m and £47m in core earnings in its financial year to December 31.

Reporting by Frank Prenesti for Sharecast.com

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