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

Elmore Kindergarten was established in 1991 by the businessman Richard Marshall, who initially contacted Nurtured Childcare last year to explore the potential for a transaction. His 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.

Each of the three settings is currently rated “Good” by Ofsted. They offer a combined total of 324 childcare places and employ 77 staff.

The acquisition of the Elmore Kindergarten group brings the total number of childcare settings operated by Nurtured Childcare to 11, adding to its existing footprint in Sheffield, Rotherham and Wakefield. The three acquired nurseries will be rebranded over the coming months to reflect their new ownership.

The deal, which is projected to increase Nurtured Childcare’s turnover by more than £2.3 million, was financed with a loan from OakNorth, the digital bank for entrepreneurs, by entrepreneurs. Nurtured Childcare worked with the KeySME Business Finance to arrange the loan.

Childcare is a key market for OakNorth. According to the Department for Education factors including population growth and return-to-office working policies will lead the sector to grow to £10.8 billion by 2027, an increase of 10.7 per cent compared to 2023.

Nurtured Childcare was founded in 2021 by the entrepreneur Craig Brennan to provide nurseries that offer high-quality education, create rich environments and foster a spirit of exploration. It is one of the country's fastest-growing childcare groups and now offers more than 790 places across the North of England, employing almost 300 staff.

Craig Brennan, CEO & founder of Nurtured Childcare, said: “We’re thrilled to welcome the Elmore team and families into the Nurtured Childcare Group. 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.”