Busy Bees acquires third largest early years group

Busy Bees has strengthened its dominance in the nursery sector after acquiring the UK’s third largest early years group.

The acquisition of the Just Learning Nurseries’ 71 settings, which offer around 6,700 places, cements Busy Bees position as the UK’s largest nursery group, taking its total portfolio to 214 nurseries, offering 19,600 places.

Courteney Donaldson, director of childcare at Christie & Co, which advised on the deal, said: “In my view this is the most significant nursery deal of the decade.”

Just Learning was set up in 1995 by MP Michael Fallon and BBC Dragons Den star Duncan Bannatyne, whose share in the firm was bought in a £22m management buyout six years later. The nursery group went on to acquire NuNu nurseries and Scottish chain Careshare.

A spokeswoman for Busy Bees says Just Learning Nurseries, which operates in the North East of England and Scotland is a “good fit” with Busy Bees, giving it “greater UK coverage”.

The spokeswoman added that no decisions had been made on whether the Just Learning Nurseries branding will remain. She added: “We see it very much as business as usual for the staff.”

Marg Randles, managing director of Busy Bees, said: “The acquisition demonstrates our confidence in the UK childcare market.

“We have been working closely with the management team to ensure the handover is seamless for children, parents and staff. We will be keeping parents informed every step of the way, as we hope to further develop the excellent care, resources and services the nurseries currently offer.”

Philip Blackburn, analyst with Laing and Buisson and author of its annual Children’s Nurseries UK Market Report, said: “It makes sense for Busy Bees to do this to create a UK-wide nursery brand which we do not have at the moment.”

He added that the move also raises Busy Bees market share from 1.8 per cent to 2.8 per cent, taking it significantly above the next largest nursery chain Bright Horizons, which has a 1.5 per cent market share.