GLOBAL CHILDCARE PROPERTY REPORT UK EDITION 2019 - THE COMPLETE CHILDCARE BROKER
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
GLOBAL RATED AS EXCELLENT CHILDCARE PROPERTY REPORT UK EDITION 2019 THE COMPLETE CHILDCARE BROKER
GLOBAL CHILDCARE PROPERTY REPORT UK EDITION - 2019
UK OVERVIEW
by PAUL J MILLER
Chief Executive Officer
2019 CHILDCARE SECTOR UPDATE
UK Childcare Market: A Golden 2018 was a year in which the UK Childcare As we look ahead to 2019 our confidence
property market continued to excel despite is buoyed by record levels of pipeline
Window of Opportunity for those the backdrop of an uncertain economy. transactions which are expected to
wishing to sell their childcare The Redwoods Dowling Kerr Childcare complete in 2019. Our KPI levels are strong
team achieved a significant milestone, with high quality UK and International
businesses. completing in excess of 100 transactions. buyers approaching us on a weekly basis
with a strong appetite to secure new
In addition to completing over 100 childcare acquisitions.
childcare deals, the team also set new
records for the number of settings sold The Childcare market is buoyant at
and the total sales transaction values present and this is impacting positively on
achieved. One of the significant trends was multiples and sales values not only in key
a 10% increase in the mix of the volume of areas and regions, but also further afield in
freehold transactions we completed when less traditional hotspots. The best results
compared to 2017. This demonstrates a are being achieved by sellers who follow
continued desire by acquirers to secure a tried and tested process with a proven
freehold assets and illustrates an availability Childcare sector specialist.
of liquidity from lenders in securing
the transactions. In 2018 we witnessed Whilst several Corporate deals were
diversification away from the big 6 lenders mooted in 2018 none were transacted and
with a number of childcare deals being regional Group sales took centre stage. We
funded by “challenger” banks. enjoyed our best year ever on the sale of
3
Freehold sales Average places per Average time
now accounted for freehold sold settings taken to sell
46.25%
has risen from 61 a freehold
places to nursery has
73 places reduced by
in 2018 compared to 36%
in 2017, 10% increase months
in the second half of
2018
2
SOLD
Mains Farm House Nursery
County Durham
Groups and congratulations to all parties 2019 has commenced against a backdrop that those challenges will be met and A school teacher is looking forward to
on the completion of Little Acorns in Bristol of political and economic uncertainty as overcome. running her first children’s day nursery
(Project Portugal). This was truly a win/ a result of the impending Brexit position. after the sale of Mains Farm House
win deal for everyone and a full case study Whilst we may be only a few short months We expect demand to continue in 2019 Nursery in County Durham.
of this transaction is included within this from theoretically leaving the European with the emergence of more overseas
First-time buyer, Lynsey Roy, beat 10 other
brochure. Union there is a strong possibility that it buyers. We also expect to see Corporate
interested parties in a bid to acquire the
may take far longer for the position to be deals as well as regional deals and the charming children’s day nursery in
However, it was not just regional sales resolved. emergence of new entrants who will Chester-le-Street.
that were buoyant but also growing local quickly become regional and national
operators and single/dual site settings. Consequently, all UK businesses will players. Mains Farm House Nursery is a thriving
Demand for Childcare businesses ranged need to operate within this framework childcare business with capacity for 34
across the full spectrum of buyers of uncertainty as well as meeting the There are undoubtedly challenges children aged 6 weeks to 5-years-old. It was
(Corporates, Private Equity, Regional other challenges facing the childcare and ahead for the Childcare sector, but we rated as ‘Outstanding’ by Ofsted in October
and Local Groups, Growing Operators, education sectors. are confident that 2019 will be another 2017 and enjoys an excellent reputation for
Experienced First Time Buyers and High positive year. the quality of childcare provided.
Net Worth Investors), with the emergence Cost pressures, availability of good quality
In a joint testimonial, the owners of Mains
of more overseas buyers from both Europe staff and trainees, rising employment costs Farm House Nursery, Maureen Sheekey
and Asia. Redwoods Dowling Kerr have and 30 hours funding will continue to be and Lianne Dixon said:
been extremely active in encouraging challenges for the sector in the coming
inward investment into the UK having year and may well impact margins in “I would like to thank Karrina Lee at
undertaken a number of initiatives in certain areas. However due to the resilience Redwoods Dowling Kerr for all her support
2018which we expect to come to fruition and proactive nature of childcare operators over the past few years, especially during
in 2019. and the quality of early years provision that the last 6 months. We couldn’t have done it
is delivered by the sector we have no doubt without you.”
OVERSEAS INVESTMENT IS BEING DRIVEN
BY A COMBINATION OF THE EXCELLENT
REPUTATION OF THE UK CHILDCARE SECTOR
AND THE GOOD VALUE REPRESENTED BY
THE CURRENT WEAKNESS OF STERLING.
3
GLOBAL CHILDCARE PROPERTY REPORT UK EDITION - 2019
INTERNATIONAL BUYER REACH
by ANDREW K STEEN
Sales and Marketing Director
A warm welcome to 2019, a At Redwoods Dowling Kerr we have been Buyer requirements for Childcare East is reducing as investors seek to realise
preparing for Brexit from the moment opportunities remain relatively unchanged additional value from acquiring in the
year which offers a significant which Article 50 was triggered. Our in 2019, the one slight variation is that Northern Powerhouse territory and also
mix of business opportunities strategy of promoting UK interests to corporate operators are now considering the Bristol/M4 corridor area. Interest is also
domestic and international buyers has opportunities with an EBITDA in excess evident for the Scottish central corridor,
and political uncertainty which paid dividends in 2018 with a number of of £150k. This is predominately due to the anchored by Edinburgh and Glasgow.
is predominately driven by the market leading international transactions supply/demand effect which exists in the
brokered by Redwoods Dowling Kerr. childcare brokerage market. In 2019 we are seeking to expand our
UK’s current Brexit position. I say
global reach with the addition of a China
“current” as with two months until In 2018 we launched our international based seminar where we will reach
buyer seminar program which served
Introducing… International out directly to the Chinese investment
the UK is expected to resign its EU
to spread the message that the UK is Seminar Programs 2019 community to facilitate the brokerage
membership we are still unaware fully open for business and is rife with of our opportunities which suit Chinese
of what a post Brexit UK will look investment opportunities, particularly in During 2018 the directors of Redwoods international investment.
the Healthcare, Childcare & Education Dowling Kerr conducted International
like. and Leisure markets. As a result of these Our seminar program is due to take place
Seminars which took place in Dubai. The
seminars we are now in a mandated seminars took place with the intention of in March, May, September and October
position to match UK opportunities promoting our UK sale opportunities and in 2019. If you are interested in finding out
with international buyers who are also enabled the directors to deal with any more then please contact us directly to
located throughout the global business concerns/objections which the attendees register your interest.
community. We look forward to 2019 had in relation to investing in the UK.
with excitement as we announce new
TYPICAL BUYER CRITERIA INCLUDES:
international seminars in the Middle East We are delighted to announce that we
and China. As our global reach expands we received overwhelming feedback that the 1) Strong, sustainable profit levels
are very excited to work on new projects UK remains an attractive investment target
which will serve to deliver increased exit and that appetite exists for profitable 2) Management team ran with strong
values to our clients. Childcare opportunities. It was also noted performance statistics
that the trend towards London & the South
3) Sites with profit levels in excess of
£150k EBITDA
4) Sites with registration levels
in excess of 50
5) Upward profit trend with strong local
demographics
4
Sweden
Canada Germany
France
Spain
United
States
China
Saudi
Arabia India
United
Arab
Emirates
Philippines
Australia
Highlighted countries South
Africa
demonstrate markets of
significant buyer interest
Source: www.BusinessBuyers.co.uk
5
GLOBAL CHILDCARE PROPERTY REPORT UK EDITION - 2019
OFFER ACCEPTED? – NOW IT’S TIME TO DELIVER
by JENNA CALDWELL
Director of Childcare & Education
Many people may think At the start of our Corporate Sales Process, Once an offer has been agreed the and frustration to all parties within the
we are actively mapping our way to Due Diligence process will commence. transaction.
that generating an achieve the right results for our clients. This Thankfully we prepare our clients in
acceptable offer is the begins with researching current buyers advance of what to expect at this stage in “As part of their preparations for a sale, it is
in the market who we feel would be the addition to offering examples of standard very important for sellers to consider the
toughest part of any deal perfect buyer. This does not always come due diligence questionnaires as we team of advisers they need. Key to this are
and where a broker’s job down to who we believe will pay the best realise it can look very daunting. We work a good agent, lawyer and accountant. They
price, it depends on what our clients value alongside our clients in this preparation should have a successful track record for
ends. For some brokers this the most and want to achieve out of the and will provide all of the data that we comparable sales and a commercial and
is the case but for us this sale. hold to the solicitor’s data room so that our pragmatic approach. On Project Portugal,
clients are only collating the information RDK were an integral part of the advisory
is only a small part of our In 2018 we brokered in excess of 100 that has not already been provided thus team. I had regular calls with Jenna who
process. childcare deals and each deal came with reducing the workload for our clients. In was instrumental in helping to resolve
its own requirements which were relevant December 2018 we completed the sale of some of the commercial issues that arose.
and personal to our clients. In each of Project Portugal which was a group of 8 She had an impressive knowledge of the
these deals we broker, we set out our settings. A detailed case study is featured sector and a great hands-on approach,
ambitions with our clients and set out later in this report which offers the vendors often acting as a vital go-between for the
a strategy to try and realise these, some perspective on the deal process. sellers and buyer.”
clients wish to retain family members
working in the settings, others wish to At this point having the right team of Georgina Bryant Partner | Barcan+Kirby
continue to receive beneficial fee rates for advisors is crucial. We will refer our clients LLP
their close family. This is also the case when to legal advisors who are specialists in
we take an opportunity to market where the childcare market and have a proven
our clients own the freehold property track record in completing childcare
but choose to lease the premises to the transactions. Each week we conduct
purchaser. deal update conference calls to ensure
that the deal is on the right track and is
We work closely with our clients to match progressing as agreed. In our experience
them to the buyers who are able to deliver a solicitor who has not been involved in
on the client’s requirements and have a childcare transactions will not have the
track record of completing on deals in a required childcare knowledge to create a
timely manner. smooth transaction and can cause delays
6
SOLD
BAMBINOS, A GROUP OF FOUR NURSERIES
SOLD TO INTERNATIONAL INVESTORS FROM
CHINA
Devon
Accounts “I would highly recommend Redwoods Redwoods Dowling Kerr is delighted to announce the sale of Bambinos, a group of four nurseries
Dowling Kerr to anyone looking to sell their based in Plymouth, Devon. The group of nurseries sold to international investors from China,
making it one of the first deals of its kind in the industry.
Accountants are also crucial within the sale business. They provide a complete end to
process. We will request an introduction end service which most other brokers do
The vendors, Mr and Mrs Lane were delighted to receive two offers from interested parties.
to our client’s accountant from the outset not provide.”
After careful consideration, they decided to accept an offer from London Thames Capital,
so that we can work alongside them and
who were working on behalf of an overseas investor from China.
again help them to understand what will Mr Arjuna – previous owner of
be required of them. This also removes the Gingerbread Day Nursery
London Thames Capital is a renowned business consulting firm that specialises in the
need for our client to be the go between
education sector based in Mayfair, London. They hold strong relationships with associates
when they have the most important job “RDK found us several potential buyers that
from China, with a vision to promote business collaboration between the UK and China.
still to do which is to remain running the they knew would be quality buyers for us
Once communications between Redwoods Dowling Kerr and London Thames Capital
business throughout the sale process. and although there were some unforeseen
were underway, it became clear that Bambinos Day Nursery was an ideal purchase for
hiccups along the way, they always had our
their clients.
Throughout the sales process we are best interest at heart and fought hard for
always on hand to drive the transaction us to achieve the sale we wanted.”
Mr and Mrs Lane were more than happy to pass their legacy on to prestigious overseas
forward and to ensure that our clients
buyers, who in turn were delighted to have a foothold in the UK childcare market in the
needs are met. More often than not this Mrs Edwards – previous owner of
form of an extremely strong nursery brand.
will mean being available 7 days a week Childsplay of Liverpool
including evening and weekends but to do
The sellers, Mr and Mrs Lane commented on their experience saying that; “We would
the best by our clients we have to literally
like to thank you for your help along the way Sarah and for introducing us to the Chinese
live and breathe our clients’ experience.
investors. We wish them every success for the future with the Bambinos brand.”
The buyers commented on their experience saying that; “I would like to say a great
thank you for your help and patience during the long process, we would like to purchase
more through Redwoods Dowling Kerr in the future.”
OVERALL, WE DO FAR MORE THAN ADVERTISE A
BUSINESS FOR SALE, WE MAKE IT HAPPEN.
7
CASE STUDY: REDWOODS DOWLING KERR - 2019
PROJECT PORTUGAL LITTLE ACORNS & 100 ACRE
WOOD EIGHT NURSERY SETTINGS
WHEN THE OWNERS THE VENDORS’ PERSPECTIVE
OF TWO FLOURISHING
Shaun Woodman was cycling in Portugal Shaun and Lisa Woodman started with a “We wanted to sell but didn’t know how to
CHILDCARE BUSINESSES in June 2018 when the call came through single nursery site in 2004 and almost 14 go about it - whether the eight settings
WITH EIGHT NURSERY on his mobile - an offer to buy the years later in partnership with James and should be broken up and sold individually
SETTINGS DECIDED IT childcare group that he and his partners Jude Evans had built up a portfolio of eight
settings across the South West, caring for
or to sell as a group.
had built up since 2004.
WAS THE RIGHT TIME TO 487 children with 160 employees. “So although we weren’t in a fully saleable
SELL THEY CAME TO THE And it was more than the asking price. position with all the t’s crossed and i’s
BIGGEST PLAYERS IN THE Shaun remembers the moment vividly. In
Building the business dotted, we decided to go for it. We were
confident in RDK - they had the right
MARKETPLACE - RDK. his own words, he was ‘dumbfounded’. It Over the years they built up a successful experience, the right people and the right
marked the start of a process that would nursery group offering excellent childcare background to do the job.”
end just six months later. provision and were ready to enjoy early
retirement however, they needed an exit Saleable position
“From the day we got the offer and for the strategy. They needed to understand how
next six months I was fixated on it - would to make the business saleable and what The initial process started with a detailed
the buyers come back with a lower offer or the process involved. meeting with an Associate Director during
perhaps a counter offer? One day I thought which the fact-finding process of collating
we’ll never get it completed and at other In 2018 RDK contacted the owners asking information and appraising the business
times I felt more positive. whether they were interested in selling the started.
group, especially during the exceptionally
“Despite many twists and turns, it was relief buoyant market conditions. Shaun added: “RDK’s appraisal was higher
and sheer happiness when we completed than we expected which was a real
on the price that we’d first agreed. Shaun explained: “We knew that RDK was surprise and very happy news.
RDK’s help and support were invaluable the biggest player in the childcare market
throughout the whole process.” because we’d come across them before
when we were looking to buy nurseries.
RDK’S HELP AND SUPPORT WERE INVALUABLE
THROUGHOUT THE WHOLE PROCESS.
8
CASE STUDY: REDWOODS DOWLING KERR - 2019
PROJECT PORTUGAL LITTLE ACORNS & 100 ACRE
WOOD EIGHT NURSERY SETTINGS
THE VENDORS’ PERSPECTIVE
“It was clear that we’d undervalued our “We had to continue to run the nurseries After a hectic six months the sale of the
businesses even though I thought we as though they were ours as they still businesses was completed in December
knew the sector pretty well and what were but whilst also dealing with the sale 2018.
nurseries were worth! process.”
Shaun added: “We feel that both seller and
“Then, just three days after the corporate RDK helped the owners source a local buyer got a good deal and everyone was
sales process had commenced, we had solicitor with the expertise and experience happy with the outcome.
an offer. to represent them as well as third party
professionals to meet other requirements “It was tough but now we are sitting back
“Whilst tempting to accept, RDK ensured that avoided delays and potential risks to a and deciding what to do next, wondering
that we followed the process and waited successful completion. what our next project will be!”
until the second round of bidding had
finished. Lisa added: “The level of support and
assistance we received from RDK was
“Once the process was complete RDK had invaluable. They helped us navigate
negotiated an exclusive deal which was the process from offer accepted until
significantly higher than the asking price - completion.”
we were dumbfounded!”
“Without them we would have been lost
Running the group while managing on many occasions, not knowing which
the sale was not an easy balancing act, direction to go in. They occupied the
especially given its size and multiple middle ground to smooth things over and
locations. we could rely on them to sort issues out.
Lisa explained: “RDK advised us that “RDK was a vital cog that kept everything
getting the sale to completion was a moving.”
challenging experience, but we knew that
with their support we could make it work.
CONTINUED...
9
CASE STUDY: REDWOODS DOWLING KERR - 2019
SALE PROFILE
PROJECT PORTUGAL LITTLE ACORNS & 100 ACRE Little Acorns Ltd
WOOD EIGHT NURSERY SETTINGS 100 Acre Wood Ltd
South West
WE ARE HERE TO HELP GETTING THE SALE OVER THE LINE Timescales
MAXIMISE OUR CLIENT’S Sale opportunity launched:
Jenna Caldwell, Director of Childcare & Jenna added: “During the transaction
SALE PRICE WHILST Education for Redwoods Dowling Kerr, process there can be lots of demands on
June 2018
ALSO ENSURING WE supported the owners every step of the vendor and we act on their behalf to Heads of Terms signed:
July 2018
DELIVER THE PERFECT the way. find reasonable and innovative solutions to
ensure the deal completes. Completion:
BUYER AND THE RIGHT “We understand that when people sell a December 2018
DEAL. childcare business that it’s an emotional “From helping the vendor appoint a lawyer
time. They have invested huge amounts of with expert knowledge to helping oversee
Buyer
time, effort and money, and the business is a raft of due diligence requirements
very personal to them. around issues such as leases, insurance Nursery Group, Just Childcare
and planning, we literally live and breathe
“We also understand that they have to run our clients’ experiences.
the business throughout the sale process,
so they can’t take their eye off the ball. “It was a complex transaction with multiple
locations but we were all delighted with
“We are here to help maximise our client’s the outcome.
sale price whilst also ensuring we deliver
the perfect buyer and the right deal. At “It demonstrates the true value of RDK - we
RDK we work with our clients at every do far more than advertise a business for
phase of the transaction to assist them sale, we make it happen and accelerate
with the swiftest possible completion.” wealth creation for our clients.”
10SOLD SOLD SOLD SOLD
Riverside Rascals Roundabout Day Nursery Beach House Day Nursery Cheverell Old School
Nursery
Argyll And Bute Stoke on Trent North Wales Wiltshire
Greater Manchester
A first-time buyer is enjoying his latest Redwoods Dowling Kerr are delighted to Redwoods Dowling Kerr are delighted to Kids Planet Day Nurseries acquire 25th nursery
business venture after acquiring Riverside announce the sale of Roundabout Day Nursery announce the sale of Beach House Day Nursery via Redwoods Dowling Kerr.
Rascals in Lochgilphead, Argyll And Bute. in Bucknall, Stoke on Trent. in Rhyl, North Wales.
The setting was acquired by Graham Ramsay, The nursery was acquired by experienced Beach House Day Nursery is a family-run Redwoods Dowling Kerr is delighted to
who is looking to build on the success of the operator Mrs Lesley Wagg, who is now looking children’s day nursery andParkseparate
Avenue out-of-
Day Nursery inannounce
Sale, Greaterthe sale of Childsplay of Liverpool
business by renovating it and introducing a fresh to build on the success of the business by school club that has operated under Mrs
Manchester wasHelen Limited in
sold to Ms Hignett whoWavertree,
had Merseyside. The nursery
ethos. His knowledge of the childcare sector introducing a fresh ethos. Thomas for over 10 years.previously purchased a childcare was sold to the highly regarded Kids Planet Day
business
stems from his wife and daughter, who are both from Redwoods Dowling Kerr. Nurseries; a family-owned group of 24 nurseries
registered nursery managers. Citing the location of the setting as one of the Beach House Day Nursery has earned a in the North West of England. This sale marked a
factors that persuaded her to purchase, Mrs truly enviable reputationRedwoods
for the quality of Kerr contacted
Dowling celebratedthe 25th
owner addition to the group.
Citing the location as one of the factors that Lesley Wagg said: childcare provided, enjoying historically
of Park Avenue highDay Nursery, Mrs Mcdowell, who
persuaded him to purchase, Mr Graham levels of occupancy and wished
regular toreferrals
discussand
the sale ofThe
her sellers,
nursery Mr so and Mrs Edwards commented
Ramsay commented: “I would definitely recommend Redwoods recommendations. she could pursue opportunities outside
on their of the
experience saying that:
Dowling Kerr, their service has been professional, childcare sector.
“Thank you to Natasha Satterthwaite at prompt and friendly. Commenting on the corporate sales process, “We have recently completed the sale of our
Redwoods Dowling Kerr for all her help through Mrs Helen Thomas said:Experienced buyer, Ms Hignett, dayhad
nursery with Redwoods Dowling Kerr, who
previously
the process of purchasing Riverside Rascals. She “Natasha Satterthwaite has been amazing. She purchased a childcare business found us several potential buyers that they knew
through
always responded very quickly to any questions has been extremely helpful during an extremely “The service provided by Sarah EllisonDowling
Redwoods at Kerr 2015would
and hasbe quality
an buyers.
I had and helped with the process of dealing complex purchase and she has remained Redwoods Dowling Kerrestablished
was excellent. She wasin the childcare sector
reputation
with a complex sale. Thank you for all the help upbeat and has always followed up any of my professional, helpful andwith
friendly throughout
numerous yearsthe Although
of experience there were some unforeseen hiccups
of managing
Natasha, it’s much appreciated!” concerns in an efficient manner. I will miss sale. Thank you for all your help.”
nurseries. along the way, they always had our best interest
hearing her cheerful voice every week.” at heart and fought hard for us to achieve the
Park Avenue Day Nursery offers salethe
wehighest
wanted. We are happy to have passed
our reigns
quality of childcare and is situated in a on to such a likeminded, quality
densely
populated area with easy access childcare
to and group
fromKids Planet and we would
main roads and public transport highly recommend
links. As a result,Redwoods Dowling Kerr to
the nursery has had long-standingothers.”success,
which looks set to continue.
11GLOBAL CHILDCARE PROPERTY REPORT UK EDITION - 2019
SELECTION OF SOLD CORPORATE SALES
Stoke Bishop Montessori School Busy Bees acquires kidsUniverse in
Bristol via RDK London via RDK
PROJECT Project Sphere
JOSHUA
Project Joshua - Bishop Montessori School Project Sphere - kidsUniverse
South West England London
A first-time buyer is enjoying her new business venture following the sale of Stoke Bishop Redwoods Dowling Kerr are delighted to announce the sale of kidsUniverse; a chain comprising
Montessori School, via Redwoods Dowling Kerr. of two Montessori day nurseries in the London Borough of Harrow.
Pegah Esmaili acquired Stoke Bishop Montessori School in Bristol after falling in love with the kidsUniverse was established by Mr & Mrs Shah in 2010. The business opened its first setting in
business and its location. Kenton in 2013 which was then followed by the Harrow setting in 2016.
Situated in leafy Stoke Bishop, the setting is renowned in the locality for the quality of childcare The nursery settings provide a welcoming home-from-home environment with a light and airy
provided. In 2015 the setting achieved an overall ‘Outstanding’ rating from Ofsted. feel throughout. Both properties benefit from good sized classrooms which create a pleasant
environment to learn and play for all ages.
Stoke Bishop Montessori School is registered for 50+ children aged 2 to 5-years-old and enjoys
historically high levels of occupancy. The previous owners spent a great deal on keeping the settings presented in excellent condition
by way of a constant refurbishment program both inside and out along with fixtures, fittings and
Following the sale, the vendor Sandra Pidgeon, is now looking forward to retirement. learning equipment. Both the settings at Marlborough Hill and Preston Hill were converted to
The buyer Pegah Esmaili said: nurseries from domestic dwellings but provide a purpose-built feel once inside.
“Thank you so much. I appreciate your patience and everything you did to ensure we got to The group has the capacity to provide childcare for 152 children and both settings have been rated as
completion.” “Good” by Ofsted.
Senior sales negotiator Karrina Lee said: The successful bidders were Busy Bees Nurseries Limited, who saw the group as the perfect
acquisition to add to their ever-expanding group portfolio.
“I’d like to wish Pegah Esmaili every success in her future endeavours. I’m sure she will enjoy running
the nursery and maintaining its excellent reputation. Marg Randles, Chief Academic Officer and co-founder of Busy Bees said:
“I’d also like to wish Sandra Pidgeon a happy and peaceful retirement.” “It’s fantastic to be able to welcome kidsUniverse to our growing portfolio. We want to provide the best
possible outcomes to children in our care and I look forward to working with their talented and like-
minded teams to continue giving the children the best start in life.”
12SELECTION OF SOLD CORPORATE SALES
Storal Learning acquire Manchester All About Children acquire latest
nursery via RDK setting via RDK
Old Crofts Bank Day Nursery Gingerbread House Day Nursery
North West London
Redwoods Dowling Kerr are delighted to announce the sale of Old Crofts Bank Day Nursery in Redwoods Dowling Kerr are delighted to announce the sale of Gingerbread House Day Nursery in
Urmston, Manchester, to corporate buyers Storal Learning. Croydon to corporate buyers, All About Children.
Storal Learning own and operate several nurseries across England and their acquisition of Old All About Children are the 12th largest nursery group in the UK, according to Nursery World, and
Crofts Bank Day Nursery is their most recent to be brokered by leading childcare broker, Redwoods the sale of Gingerbread House Day Nursery marks their latest acquisition through leading childcare
Dowling Kerr. broker Redwoods Dowling Kerr.
Having successfully operated in the Trafford town of Urmston since 1997, the nursery has earned Commenting on the transaction, the vendor Mr Shandakumar Arjuna said:
a truly enviable reputation for the quality of childcare provided. As a result, Old Crofts Day Nursery
enjoys historically high levels of occupancy and regular recommendations and referrals. “I would like to thank Karrina Lee who dealt with the sale of my nursery, the service she provided was
excellent from start to finish.
A spokesperson from Storal Learning said:
“We achieved 5 offers, 3 of which were above asking price. Once we had accepted the offer, Karrina
“We are thrilled to now be a part of Old Crofts Bank Nursery and very much look forward to working Lee was on hand to deal with all aspects of the sale.
with the nursery’s fantastic team to continue building on its long-standing reputation for high quality
childcare.” Russell Ford of All About Children commented:
Senior Sales negotiator Sarah Ellison said: “2018 has been a huge year of progress for All About Children, a year in which we have transformed
our business. Although we have perhaps ‘flown under the radar’, in the 16 months between August
“It was a massive decision for the sellers to come to market as they have run Old Crofts Bank Day 2017 and November 2018, we have acquired 13 new nurseries – taking our Group from 17 to 30
Nursery for over 20 years. settings.
“After meeting with Storal Learning, they felt they were the right group to build on the success of the “The most challenging part of that has been to find flagship nurseries operating in the premium
business and ensure its excellent reputation prevails. sector, or nurseries with the potential to be, and we couldn’t have done that without the support of
brokers such as Redwoods Dowling Kerr.
“I wish Linda Conway and Janet Hazzlewood all the best. It has been a pleasure assisting them with
their sale, especially knowing how special the nursery, parents and staff are to them. “I’m very grateful for Jenna Caldwell and her team, who’ve done a fantastic job for us (and for sellers)
and who’ve already found additional outstanding nurseries for us to acquire in early 2019.”
“We have worked with Storal Learning on other acquisitions and once again it was great to help them
purchase another nursery. We wish them all the luck in the future.”
13GLOBAL CHILDCARE PROPERTY REPORT UK EDITION - 2019
SELECTION OF PROJECTS FOR SALE
Project Twilight
Project Chase Project Jacob Project Anna PR OJEC T ALV O N PROJECT ELIJAH
Project Chase Project Jacob Project Anna Project Alvon Project Twilight Project Elijah
Scotland North West England East of England North West England South West England South West England
Offers invited in the region of Offers Invited for the Group Offers invited in the region of Offers Invited Bids invited Offers invited for the Group
£1.2m Freehold & Leasehold £1.2m Freehold Freehold Leasehold
Freehold Ref: 46563 Freehold Ref: 46748 Ref: 46579 Ref: 46513
Ref: 46539 Ref: 46740
Combined income of £1.3m
Turnover of £559k for the Combined income of £1.3m Income of £184k for the year Income of £1.5m for the year Combined income of £55k for the year end March 2018
year end May 2018 with an for the year end March 2018 end November 2017 with an end June 2018 with an with an adjusted EBITDA of with an adjusted EBITDA of
adjusted EBITDA of £188k. with and adjusted EBITDA adjusted EBITDA of £53k. adjusted EBITDA of £260k. £159k. £236k.
of £139k. Private term time only A well-established children’s Two oustanding children’s
Well-maintained children’s The opportunity to acquire
A group of 3 unique nursery with a valuable day nursery, with a separate day nurseries with a stunning
day nursery with a capacity an award-winning group of
children’s day nurseries four-bedroom detached 4-bedroom family home. This 4 bedroom cottage included
in excess of 75 children. two children’s nurseries.
with a combined capacity family home set within 1/3 impressive nursery is set in the sale.
Robust organisational Combined capacity of 130
for 200 children. acre of land. within 1.5 acres of grounds. Combined capacity for 95
structure in place with 15 children.
2 modern purpose-built Capacity for 134 children. children.
dedicated staff. Current capacity for 44
Team of highly-qualified
settings and 1 historic children. Rated ‘Good’ by Ofsted Rated ‘Outstanding’
Rated ‘Very Good’ by Care and long-standing staff.
converted property. by Ofsted
Inspectorate Significant potential to Millie’s Mark accredited
Robust organisation increase capacity, income 2016/17 at both settings.
structure in place with a and profitability.
Rated ‘Good’ by Ofsted
team of 70+ staff.
Rated ‘Good’ by Ofsted
Rated ‘Outstanding’ & ‘Good’
by Ofsted
14EXIT PLANNING
If you want to discuss your exit
requirements then we would be
delighted to visit you in confidence to
discuss the options available.
Contact Robert Yates on 0844 7011 819
email Robert.Yates@redwoodsdk.com
WE ARE THE
ONLY BROKER TO
OFFER A “WHOLE
OF MARKET
APPROACH” FOR
THE CHILDCARE
SECTOR.
15Contact us to find out more about our complete REDWOODS DOWLING KERR
Redwoods Dowling Kerr are the
Childcare business brokering service. complete childcare business broker.
From large groups to single settings,
To buy: Call Jenna Caldwell, Sarah Ellison, we sell more childcare businesses
than any other broker.
Karrina Lee, Natasha Satterthwaite & Sophie Jakeman
or any of the childcare team on 0844 7011 812
or email Childcare@redwoodsdk.com
To sell: Call Robert Yates on 0844 7011 819
or email Robert.Yates@redwoodsdk.com
Or visit the UK’s fastest growing business broker
website www.redwoodsdk.com/childcare
POWE R E D BY
.co.uk
THE COMPLETE CHILDCARE BROKER M&A League TablesYou can also read
