ABC, which has also recently swallowed up more childcare businesses in the US and now has 2,320 settings worldwide, said the Busy Bees voucher operation was 'a new business segment' that could be applied 'across the global childcare market'.
Eddy Groves, the chief executive of ABC, indicated that the purchase of Busy Bees - the UK's sixth largest nursery chain, with 46 settings - was 'a starting point for further expansion into the fragmented UK market and throughout Europe'.
Mr Groves told a press conference, 'We have been taking definite steps to enter into the UK childcare sector for some time, building on our experience in the US.' He described the Lichfield-based chain as 'a well-established company whose committed and experienced management team will remain in place following the acquisition'.
Co-founder and director of Busy Bees John Woodward said, 'This is fantastic news for Busy Bees, for the parents, children and staff, as well as for the childcare sector as a whole. We have not done this deal to take money out and stand still. ABC will offer expertise upon which we will be able to draw to realise our ambitions of further expansion for our nursery business as well as our enormously successful voucher scheme.'
An ABC spokesman said that while 'several parties' had been interested in Busy Bees' voucher business, 'ABC was the only potential buyer interested in the centres as well'. Mr Woodward said ABC had approached Busy Bees about the buyout, which is on a cash and debt-free basis.
ABC has also acquired the US-based childcare company La Petite Academy for about $420m (168m), making it the second largest provider in the US.
It also announced the $65m (26m) purchase of 49 childcare centres in New Zealand and six in Australia from Macquarie Leisure Services. As a result of the deals, shares in ABC rose by 9.8 per cent on the Australian Stock Exchange.
Busy Bees had been backed by the private equity group, Gresham. It initially invested 12m in 2000 to create 1,400 nursery places and then further funding took the number of nursery places to over 4,000.
Mr Woodward said that while Gresham had been 'very supportive', it did not have the resources to consolidate the UK nursery market. He added, 'We have been looking at opportunities to grow both sides of the business. We want to continue to expand the voucher business in the UK but we also think there is a great opportunity globally. Obviously ABC has a number of nursery operators around the world, but we are unique in terms of the voucher format so the idea is that these vouchers will be central to a global development.'
Mr Woodward said that Busy Bees' voucher business was now turning over more than 130m a year, involving more than 6,000 employers and 50,000 parents.
He confirmed that the UK nurseries and the voucher business would continue under the Busy Bees name and that the company had been exploring other products such as care vouchers.
ABC LEARNING CENTRES
* The world's biggest childcare provider started life in 1988 as one nursery in a renovated church in Ashgrove, Queensland, set up by current chief executive Eddy Groves and his wife, Dr Le Neve Groves. It now has childcare facilities in Australia, New Zealand, the United States and the UK.
* By June 2001 ABC had grown to 43 centres and was listed on the Australian Stock exchange. It set up ABC Acquisitions as the 'growth engine' of ABC to acquire existing childcare businesses and sites to develop purpose-built centres.
* In 2004 it took over the Peppercorn Management group and Child Care Centres Australia, followed by Kids Campus and its 106 centres.
* In 2005 it made its first move into the US market with the purchase of the Learning Care Group.
* In June 2006 ABC bought the Texas-based Children's Courtyard and this month it acquired La Petite Academy in the US and Busy Bees in the UK. It now has 2,320 centres.
