View our 2024 nurseries M&A review below, covering corporate deal activity across the day nurseries market last year.
2024 Day Nurseries M&A Overview
Deal volumes
M&A activity among the leading corporate consolidators in the UK nursery sector remained solid throughout 2024, though at a slightly lower pace compared to the previous year
With limited economic growth and persistent inflation/interest rates, short-term deal activity is expected to remain stable, however an uptick is anticipated once base rates begin to decrease later in the year
Geographic split of deals
The South-East, North-West and Midlands have been the most active areas, accounting for c.60% of deal activity
Other deals have been evenly spread across the UK, with continued activity across all regions
Nursery sizes
Acquirers continue to target nurseries with capacity for 50+ children, with a notable number of deals involving larger settings with over 100 places
Private equity involvement
PE remains a key driver of M&A activity in the market, with all of the most active acquirers currently PE-backed
Kids Planet (Fremman Capital) remains the most prolific acquirer by some way, followed by Bright Stars (Oakley Capital), Storal (Graphite Capital), Kindred (Livingbridge) and Grandir UK (Infravia)
2024 has also seen new platforms for Foresight (Family Adventures Group) and Downing (Chalk Nursery Group), in addition to a new investor for Kindred in Livingbridge
Deals by month (rolling last 12 months)
M&A Deals By Size of Day Nursery
Notable Sector Deals
Acquisition of Katey’s Nursery by Chalk Nursery Group
A strategic deal for Downing-backed platform, Chalk Nursery Group, with the acquisition of Katey’s Nursery and Pre School
Based in South West London, Katey’s Nursery consists of five nurseries which can accommodate 273 children
Downing formed Chalk Nursery Group in 2024, and Katey’s will act as the cornerstone investment of the new group
This deal aligns with Downing’s approach to investing in businesses that create a positive social or environmental impact
Dukes Education‘s acquisition of Pippa Pop-ins
An interesting deal for Dukes Education Group, with the acquisition of London-based Pippa Pop-ins Nursery Schools
Dukes Education is the largest premium school group in the UK, with provision for children aged three months to eighteen years
It has over 30 school brands with 10,000 pupils as well as summer schools, activity camps, and a university entrance consultancy service
Pippa Pop-ins is a highly respected group of four nurseries based in London, regarded as one of London’s leading early years education providers
Foresight’s investment in Family Adventures Group
A successful £5 million investment from Foresight Group into innovative nursery and play provider, Family Adventures
Family Adventures operates six nursery sites across the South West and Midlands, all rated good by Ofsted, along with two children’s leisure venues
Family Adventures is built on a hub and spoke model, whereby a children’s leisure site opens with accompanying nurseries created nearby
The investment will allow the group to expand throughout the Midlands and the South West, with the growth plans expecting to create up to 140 skilled jobs per year
Acquisition of Barnkids Nurseries by Bright Stars
A strong addition for Bright Stars Nursery Group with the acquisition of outdoor education focused group Barnkids Nurseries
Barnkids Nurseries is a group of four nurseries, two of which are rurally located and utilise forest schools and outdoor learning, and two seaside locations which utilise beach schools
The four settings can accommodate a total of 264 children aged three months to five years
The acquisition brings Bright Stars to 109 settings across the UK as it continues to expand rapidly with the backing of Oakley Capital
Acquisition of Tiptoes Day Nursery Group by Kids Planet
A strategic deal for Kids Planet, acquiring the East Yorkshire based nursery group Tiptoes Day Nursery
A group of 7 purpose built properties, Tiptoes Day Nurseries provides childcare for over 700 children in Yorkshire
Kids Planet has continued to be a prolific acquirer throughout 2024, with several acquisitions across the Midlands and the North West
The deal will see Kids Planet, home to 213 UK nursery settings, expand its presence in Yorkshire
Storal‘s acquisition of Children 1st Day Nurseries
A strong addition for Storal with the acquisition of Children 1st Day Nurseries
Children 1st Day Nurseries has 24 nursery settings throughout 6 counties in the Midlands and Yorkshire, with c.2,500 childcare places
Since being founded over 25 years ago, Children 1st has grown into a leading nursery group and also boasts a renowned training centre
The Storal group is now home to over 50 nursery settings offering 5,000+ childcare places across the UK, predominantly the South and East
Livingbridge’s investment in Kindred Education
A successful investment from mid-market private equity investor Livingbridge into nursery group Kindred Education
The deal has also seen Unigestion, who had owned the business since 2017, reinvest alongside Livingbridge to support future growth
Early years education provider Kindred Education, has 48 nurseries across England
The investment will allow Kindred to expand its geographic reach while enhancing the delivery of its service offering
Acquisition of Red Bus Nurseries by Chalk Nursery Group
An interesting deal for Chalk Nursery Group, acquiring Bristol-based Red Bus Nurseries
Red Bus Nurseries is a collection of three childcare settings based in Bristol, all rated outstanding by Ofsted, providing education to over 700 children in the area
This is the second acquisition for newly formed Chalk Nursery Group, backed by Downing
The deal will mark entry into a new region for Chalk Nursery, following its first acquisition of a chain of five nurseries in South West London
Comments