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Nursery groups: Busy Bees buys up hospitals chain

Busy Bees, the UK's largest nursery provider, has added another nursery chain to further cement its growth in the private nursery market.

The company confirmed the acquisition last week of the nine-strong TLC (Tender Loving Childcare) chain for an undisclosed sum.

Busy Bees, which is wholly owned by Australian-based ABC Learning Centres, now has 133 nurseries across the UK.

TLC's nurseries are mainly on NHS sites attached to hospitals. They are at Nottingham University, Nottingham City Hospital, Milton Keynes Hospital, Hillingdon Hospital, Warwick Hospital, Rugby, Coventry, Watford Hospital and St Albans City Hospital.

Barbara Baker, chief executive and co-founder of TLC, will stay on and join the Busy Bees management team.

Lynn Woodward, managing director of Busy Bees, said, 'We're delighted. Barbara will look after the NHS division. She will help move the business forward in the public sector and public healthcare.'

Busy Bees already runs nurseries on several hospital sites. NHS staff have priority over nursery places but in some cases they are open to the wider community. Ms Woodward added that more than 50 per cent of NHS Trusts use Busy Bees' childcare vouchers.

TLC, set up in 1989, has had private equity backing from Aberdeen Asset Management and Close Brothers since 2000.

Commenting on the sale, Ms Baker said, 'We saw a lot of similarities in our childcare philosophy. We've been very successful with the NHS and this seemed a really good way to develop the company.'

Last September Busy Bees bought the 88 Leapfrog nurseries from Nord Anglia, but in November closed ten of the sites that were losing money, as Nord Anglia had previously planned. However, occupancy levels are now rising.

Among the large chains, Busy Bees remains the most likely buyer of Kidsunlimited's nurseries, if the sale goes ahead (News, 10 January). Ms Woodward would not comment but said, 'Every opportunity we will look at very seriously.'