Ann Education is funded by Patrick Lou, who is from China and has a banking and finance background, along with a private investor.
Alongside expansion in the UK, Ann Education is looking into how to take its education and care model to China.
The childcare operator is planning on further expansion and has appointed David Hancock as chief executive to help build on the acquisition. Mr Hancock brings 14 years of experience in the sector to the role.
He was previously managing director of Treetops Nurseries, a large group predominantly in the east and south-east of England, which was bought by Busy Bees in 2017. Most recently he was chief executive of Little Garden Day Nurseries where he was responsible for the successful turnaround and sale of the four London-based nurseries to an investment company last year.
‘We would like to acquire more nurseries but would like to do it in a measured way,’ said Mr Hancock. ‘We do not want to grow, grow, grow but to demonstrate to investors that we can take a nursery business and, together with my experience and the people in that business, make it a beacon of high quality childcare.
‘We will then look through expansion to transfer what we have learned into what we go on to acquire. We hope to acquire great settings along the way that we can also learn from.’
Family-owned A Step Ahead Nurseries was established in 2006 by former owners Antonia and Mark Ogden-Meade. The six settings have an effective operating capacity for around 312 children and were sold through specialist business property adviser Christie & Co for an undisclosed sum. There are no current plans to change the nursery group’s name.
‘I am immensely proud of what we have achieved in A Step Ahead,’ said Ms Ogden-Meade.
‘Working with such a talented team and lovely families has been a privilege. I look forward to seeing the company grow and feel genuinely excited for everyone knowing that David and his team are just as child focused as we have been and there will be some amazing opportunities to develop the company even further over the next few years.’
Mr Hancock said that protecting A Step Ahead in terms of cashflow and ensuring that staff and children are safe during the Covid-19 pandemic is paramount before considering further expansion. Ann Education is open to acquiring individual nurseries that are local to A Step Ahead or buying other groups of nurseries elsewhere that come with a good management infrastructure. He added that, from a commercial point of view, settings with 50 plus places are ideal.
‘When looking at buying a nursery, I like to see great interactions and also get a “feeling” which is difficult to describe but if it’s not there then I question whether it is an acquisition worth making,’ said Mr Hancock.
Nick Brown, head of brokerage at Christie & Co, said, ‘This has been a highly confidential sale which has come with its challenges around extension of leases, deal structure and a number of properties but everyone connected to this transaction has been patient and worked through all of the challenges which have presented themselves.
‘Both myself and Sophie Willcox are delighted that we have been able to complete another group transaction in what are undoubtedly testing times for many sectors but the resilient nature of the childcare sector and the longer term view is that buyers are taking via acquisitions which are happening now is very encouraging for the sector as a whole.’