Caledonia Investments plc

CALEDONIA TO INVEST IN BLUE DIAMOND GARDEN CENTRES

·     Caledonia will invest approximately £60 million in Blue Diamond Limited, the UK and Channel Islands' leading garden centre operator.

·     Capital injection will support Blue Diamond's continued growth in a large and fragmented market with significant consolidation potential.

Caledonia Investments plc ("Caledonia") is pleased to announce that it has agreed to invest approximately £60 million in Blue Diamond Limited ("Blue Diamond" or the "Business"), the UK and Channel Islands' leading garden centre operator. The transaction remains subject to approval by Blue Diamond's shareholders and certain other customary conditions and is expected to complete in early July.

Caledonia will invest approximately £60 million of capital into Blue Diamond, comprising £40 million to support future growth initiatives and up to £20 million 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 £40 million of additional follow-on capital available to Blue Diamond over the next five years, subject to agreed conditions. This additional capital is intended to support Blue Diamond's acquisition programme, investment in the existing garden centre estate and facilitate shareholder liquidity.

Founded in Guernsey in 1904, Blue Diamond has been transformed from a traditional horticultural business into a destination garden centre group, spanning gardening, home and leisure, and food and hospitality. The Business operates 54 garden centres across the UK and Channel Islands and generated revenue of circa £395 million and EBITDA of circa £47 million in its financial year ended 31 December 2025.

Under the leadership of its CEO, Alan Roper, the Business has delivered a strong and consistent track record of disciplined growth through acquisitions and operational improvements, underpinned by a highly cash-generative estate and a differentiated customer proposition. Since 2013, revenue and EBITDA have grown at c.17% and c.21% CAGR respectively.

Blue Diamond today occupies the leading position in a large and fragmented market, with attractive long-term consolidation potential. The Business intends to continue its strategy of accretive acquisitions and investment in its core estate to improve sales and profitability.

Tom Leader, Head of Caledonia Private Capital, commented:

"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.

Over more than two decades, Alan and his team have built the leading platform in the UK garden centre sector through disciplined acquisitions, consistent investment and operational excellence.

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."

Simon Burke, Chair of Blue Diamond, commented:

"We are pleased to welcome Caledonia as a partner for the next stage of Blue Diamond's development. Throughout the process, the Caledonia team demonstrated a clear understanding of our business, culture and our ambitious plans for the future. Its long-term approach and flexible capital base make it an ideal partner as we continue to invest in our estate, pursue further growth opportunities and build on the platform we have created over the last 25 years."

For further information contact:

17 June 2026

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Notes for editors:

Caledonia Investments plc

Caledonia is a FTSE 250 self-managed investment trust company with a long track record of delivering consistent returns and progressive annual dividend payments to shareholders.

Our aim is to generate long-term compounding real returns that outperform inflation by 3%-6% over the medium to long term, and the FTSE All-Share index over 10 years.

We are a long-term investor and hold investments in both listed and private markets across three pools: Public Companies, Private Capital and Funds. Each has a strategic allocation of capital, investment strategy and target return.

We buy to hold, investing in high quality companies with strong market positions and fundamentals, alongside investments in private equity funds with track records of success. The result is a well-balanced diversified portfolio of investments with a global reach.

In the Private Capital arena, Caledonia typically seeks to invest £50m to £150m in private companies, either on a majority or minority basis, where Caledonia provides enduring capital and support to investee company management teams over the longer term.  The Caledonia Private Capital portfolio includes Cobehold (the holding company of Cobepa, a European unquoted investment house), Cooke Optics (a UK manufacturer of premium cinematography lenses), Butcombe Group (an inns, restaurant and drinks business with a pub estate stretching from Southwest London to Bristol and the Channel Islands), AIR-serv Europe (a leading designer and manufacturer of air, vacuum and jet wash machines provided as turn-key solutions to fuel station forecourt operators) and Direct Tyre Management (the UK's leading independent provider of outsourced tyre management services to fleet operators).

For additional information on Caledonia Private Capital, please visit www.caledoniaprivatecapital.com and for Caledonia please visit www.caledonia.com.