DGC Dobbies Garden

RNS Number:7087G
Dobbies Garden Centres PLC
6 March 2000


                Dobbies Garden Centres plc
                             
                             
                             
*    #8.7 million Scottish acquisition (Findlay Clark Ltd.)

*    4 new garden centres acquired

*    Earnings enhancing in first year

*    Commanding position in Scotland

*    Fourteen centres in total makes Dobbies third largest
     garden centre group in UK



Enquiries:

James Barnes, Chief Executive
Dobbies Garden Centres                       0131 663 1941

Bob Gregory
Bell Pottinger Financial                     0171 353 9203

Frank Malcolm
Bell Lawrie Wise Speke                       0131 225 2566


Dobbies  Garden  Centres  plc  ("Dobbies")  has  agreed  to
acquire  the whole of the issued ordinary share capital  of
Findlay  Clark Ltd (Findlay Clark) for a cash consideration
expected to be in the region of #6.0 million.

Findlay  Clark  is the owner and operator  of  four  retail
garden  centres  in Scotland, two in the Glasgow  area  (at
Milngavie and Paisley), one in Aberdeen and one in Kinross.
All  of  the  garden centres are owned on a freehold  basis
save  that in Aberdeen which is held on a long lease, which
has   147  years  to  run.   Findlay  Clark  also  owns   a
landscaping  business, which will  not  form  part  of  the
operations acquired.

The final amount payable will be subject to calculation  of
a   net   asset  value  at  the  completion  date  of   the
transaction,  31  March  2000.  In addition,  Dobbies  will
refinance  the  net  borrowings of  Findlay  Clark  at  the
completion  date;  these borrowings are anticipated  to  be
approximately  #2.7  million. The total cash  consideration
for  Findlay Clark, including the refinancing of borrowings
will  be met from Dobbies current facilities.  Dobbies  has
recently agreed a #21m facility from Bank of Scotland.

Turnover  of  Findlay  Clark in the financial  year  to  31
August  1999  was  #7.4 million of which #1.8  million  was
attributable to the landscaping business.  After  deducting
administration  costs  of #1.0 million,  operating  profits
were  #0.4  million, of which #0.3 million was achieved  by
the  landscaping  business.  Profits before  taxation  were
#0.2 million.  Profitability in the year to August 1999 was
adversely  affected by a fire at the Paisley garden  centre
which  has  subsequently been rebuilt.  The net  assets  of
Findlay Clark at 31 August 1999 were #4.5 million.

Following   the  acquisition  Dobbies  expect  to   realise
significant cost benefits from Findlay Clark by eliminating
directors  costs  and generating significant  savings  from
integrating the administration.  In addition, the  enlarged
Group should be able to achieve economies of scale in terms
of  marketing  and  advertising expenditure,  and  improved
buying  margins.  On this basis, Dobbies expects  that  the
acquisition will be earnings enhancing in its first year of
ownership.

Commenting  on  the  acquisition  Mr  James  Barnes,  Chief
Executive   of  Dobbies  said  "Findlay  Clark  complements
Dobbies  twin  track  strategy of  acquiring  large  garden
centres and of reinforcing our regional presence.  Each  of
the Findlay Clark centres is capable of enlargement through
further  development and culturally and  operationally  the
fit  is  a  good one.  The acquisition expands our presence
into  two major Scottish cities, Glasgow and Aberdeen,  and
gives Dobbies the commanding position in Scotland.  With 14
centres, the Group is now the third biggest in the  UK  (by
number of centres).


END

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