We are pleased to release our review of M&A activity across the UK nurseries sector in H1 of 2024. The report highlights deal volumes, the most active acquirers, and the notable deals which have taken place.
H1 2024 Nurseries M&A Overview
Deal volumes
Deal activity across the nursery sector remained robust in H1 of 2024, with the expectation that deal volumes will continue to increase in H2 of 2024 and into 2025 as interest rates ease
Labour’s entry into government following the general election does not appear to be impacting M&A activity, but potential changes to capital gains tax represent a risk going forward
Geographic split of deals
The South-East and North-West have been the most active areas, accounting for over 50% of deal activity
Other deals have been evenly spread across England, but activity has been subdued in Scotland and Wales
Nursery sizes
The focus of corporate acquirers remains on nurseries with over 50 places, with numerous transactions of 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), Family First (August Equity), Kindred (Unigestion) and Grandir UK (Infravia)
H1 has also seen new platforms for Foresight (Family Adventures Group) and Downing (Chalk Nursery Group)
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 has recently formed Chalk Nursery Group, 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 provider
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
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