Nurtured Childcare has acquired Elmore Kindergarten Group, which operates three children’s day nurseries in Sheffield.

The transaction was financed with a £2.7 million loan from digital bank OakNorth. The acquisition is projected to increase Stockport-headquartered Nurtured Childcare’s turnover by more than £2.3 million.

In addition to enabling the acquisition of Elmore Kindergarten Group this facility refinanced existing borrowing by the Nurture Childcare group and will provide an element of working capital.

Founded in 2021, Nurtured Childcare now operates 11 nurseries across the north of England, with more than 790 places and almost 300 staff.

Elmore Kindergarten was established in 1991 by Richard Marshall, whose sale of the business has enabled him to retire. The Elmore Kindergarten group consists of three settings: Broomhill Nursery, located close to Sheffield Teaching Hospital; Ecclesfield Nursery; and Middlewood Nursery, which is set at the entrance of Wadsley Park, within the Middlewood Park Conservation Area. The three nurseries will be rebranded over the coming months to reflect their new ownership.

Craig Brennan, chief executive and founder of Nurtured Childcare, said: “Each of these sites is in a prime location and is already equipped with significant resources, which we plan to build on with further investment and an expansion of the extra-curricular activities they offer, as well as providing staff with access to our detailed, bespoke programme of training and support.”

Stewart Haworth, director of debt finance at OakNorth, said, “Nurtured Childcare represents everything we look for in a borrower – ambitious leadership, operational rigour, and community impact.”

Nurtured Childcare worked with Poynton, Cheshire-based KeySME Business Finance to secure the OakNorth loan.  Ash Richardson, founder of KeySME Business Finance, said: “We were appointed on this transaction to support Nurtured Childcare with a competitive, bespoke funding package to facilitate the acquisition of Elmore Kindergarten Group and consolidate existing finance.

“Working with our lender partner, OakNorth, we have collectively delivered a flexible structure to support Craig’s ambitions for the business.”

Nurtured Childcare also received commercial legal advice from Mark Ryan Solicitors and Clarion Solicitors, while the property element of the transaction was handled by John Galvin of Clifford Johnson Solicitors.

The vendor received legal advice from Wake Smith Solicitors and Eddisons.