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Caledonia Investments PLC on Wednesday said it will invest around £60 million in Guernsey-based garden centre operator Blue Diamond Ltd. The London-based trust investing in public and private companies globally said the capital injection will support Blue Diamond’s growth in a ‘large and fragmented’ market, which it noted has ‘significant consolidation potential’. Caledonia said the transaction comprises £40 million in support of future growth initiatives and up to £20 million to facilitate shareholder liquidity. The trust noted that following the transaction, it will hold a fully diluted minority shareholding of around 16% in Blue Diamond. Caledonia added that a framework for up to £40 million of additional follow-on capital has been agreed with Blue Diamond, available over the next five years. This further capital is aimed at supporting Blue Diamond’s acquisition programme, facilitating shareholder liquidity and aiding investment in the garden centre estate. Blue Diamond operates 54 garden centres across the UK and Channel Islands, and generated around £395 million in revenue in 2025, as well as earnings before interest, tax, depreciation and amortisation of of around £47 million, noted Caledonia. The deal is seen closing early next month, but remains subject to approval by Blue Diamond shareholders as well as other customary conditions. Shares in Caledonia Investments were up 1.0% at 358.41 pence on Wednesday morning in London. ‘Blue Diamond is exactly the type of business with which we look to partner: a clear market leader with an outstanding management team delivering excellent cash generation which can be re-invested to grow the Business,’ said Tom Leader, head of Caledonia Private Capital. ‘We have been impressed by the strength of the business model, the quality of the team and the opportunities ahead. We are delighted to be partnering with Blue Diamond and look forward to supporting the company through its next phase of growth.’ Copyright 2026 Alliance News Ltd. All Rights Reserved.
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