The Sunday Times reported that Just Learning, the third largest nursery chain in the UK, which operates 71 nurseries with 6,256 places, has appointed the corporate finance arm of Deloitte to conduct an auction for its sale. Industry sources confirmed that the sale is estimated at 80m.
Michael Fallon, a Conservative MP who co-founded the chain in 1995, was unavailable for comment. But a spokesperson said, 'Senior management refuse to comment on the sale at this time. They are completely focused on the tragic accident at Cambourne' (see page 5).
Just Learning is likely to attract attention from key players in the nursery sector and private equity investors.
John Woodward, managing director of Busy Bees nursery chain, said that the invited figure of 80m represented 'renewed interest in the sector'.
He added, 'We know there are a number of investment groups who are keen to invest in the nursery sector. We would look at any viable group that came on the market.'
Alan Bentley, CEO of The Childcare Corporation, said the current estimate of its value, if achieved, should 'give comfort to those who have sought to develop along similar lines'.
He said, 'If they are successful in achieving their sale price, it will mean the company has been valued at around 13 times their EBITDA (earnings before interest, tax, depreciation and amortisation) for last year - which is a comfortable multiple and one which could bring with it further private investment into the sector. My belief in this size of figure being attached to the offer is based upon the largely freehold property model used by Just Learning to develop, which is very similar to our own.'
