Creative Education said last week it had acquired the share of the business for a total consideration of 288,600 and its chief executive, David Alexander, added that it had 'the option to buy the rest'. He said, 'We are delighted to have acquired this stake in Academy Childcare as this will considerably strengthen our position within the marketplace.'
Primary Steps, specialising in settings for up to 50 children, has been running for just three years and has 11 nurseries and one pre-preparatory school, all based in London and the south-east, with a total of around 400 places. Academy Childcare owns 12 nurseries in England but has more than double the places of Primary Steps. Its plan to open a 128-place purpose-built nursery in Guildford next April will take its number of places to just under 1,100.
Mr Alexander said, 'We have no input at this stage in the management of the business whatsoever. It gives us a seat on the board and that's as far as it is at the moment.'
Primary Steps plans to expand to 50 nurseries by 2005, through acquiring other settings. In April, Creative Education Corporation plc became the first nursery group to float on the Alternative Investment Market, the London Stock Exchange for smaller, growing companies, with shares valued at 5p. Its current share value is about 9.15p.
John Bradney, chief executive of Academy Childcare, said, 'We're delighted that Creative Education has taken an interest in us and are delighted to be working with them.'
He added that the company was considering floating 'when the time is right', which he anticipated would be some time next year.