Ravenstone House Nurseries has sold ten of its 13 nurseries to four different buyers, who include the chains Child First and Magic Nurseries.
Ravenstone, owned by equity partner Pacific Investments and the Pauley Group, has kept Milton Keynes Preparatory School and Nursery, its sister school Broughton Manor and Walton Nursery.
Chief executive Hilary Pauley, who started the company in 1975, said she had chosen to keep the cluster of Milton Keynes nurseries. She added that she also wanted to develop her publishing business and website Everything Early Years.
She told Nursery World, 'The 13 nurseries totalled approaching 1,500 children and 400 staff. I feel that distant management of other people's children can be quite difficult - when our nurseries are 50 or 60 miles away and we want to make sure the children have the same service we offer up here around our base, it's quite hard.'
Magic Nurseries bought the last two nurseries early this month. Magic now has eight nurseries and 150 staff. Managing director Tom Reed said, 'We've bought into very good occupancy levels and increased these levels in the nurseries when we've taken over.
'The sector faces problems because children's centres were very well facilitated initially - they have the wow factor for many parents. So we, the private sector, have to invest equally and try to beat them on quality.
A lot of people's reaction is to cut back and try to save money, but I think that is often a mistake.'
Child First is now a five-nursery chain, having acquired four Ravenstone House nurseries in Banbury, Bicester, Aylesbury and Moulton Lodge last September.
Following the re-launches in January, director Tom Shea emphasised that Child First would not be expanding further. He said, 'We believe the sector is re-shaping and needs good role models that can succeed in partnership with all parts of the sector, including local and central government as well as the financial sector.'
Eaton Square Nurseries bought Ravenstone House's three London nurseries based at Hyde Park and South Kensington last year.
The St Albans setting of Ravenstone House was bought by an undisclosed buyer.