Caledonia to invest £60 million in garden centre operator Blue Diamond Proactive uses images sourced from Shutterstock
Caledonia Investments (LSE:CLDN, VFEX:CMCL), the FTSE 250 self-managed investment trust, has agreed to invest around £60 million in Blue Diamond, the leading garden centre operator in the UK and Channel Islands.
The shares were up 7.2% at 2.68p, though the move appears to be driven by a separate LSE filing that revealed stake-building by an individual investor, Neil Partington.
He has acquired 4.6 million shares, equivalent to a 3.54% stake in the business.
Returning to the Blue Diamond deal, the transaction will leave Caledonia with a minority stake of roughly 16% and is expected to complete in early July, subject to shareholder approval.
The investment comprises £40 million to fund growth and up to £20 million to give existing shareholders the chance to cash out.
Caledonia has also agreed a framework to provide up to £40 million of further capital over the next five years to support acquisitions and estate investment.
Founded in Guernsey in 1904, Blue Diamond operates 54 garden centres spanning gardening, home and leisure, and food and hospitality.
The business generated revenue of about £395 million and underlying earnings of about £47 million in the year to 31 December 2025.
Since 2013, revenue and earnings have grown at compound annual rates of about 17% and 21%, respectively under chief executive Alan Roper.
Caledonia is backing a market leader in a large and fragmented sector that it sees as ripe for consolidation.
Blue Diamond intends to continue acquiring rival sites and investing in its existing estate to lift sales and profitability.
Tom Leader, head of Caledonia Private Capital, said the company was a clear market leader with strong cash generation that could be reinvested for growth.
Simon Burke, chair of Blue Diamond, said Caledonia’s long-term approach and flexible capital made it an ideal partner for the next stage of the company’s development.
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