Tim Waterstone buys Early Learning Centre
�62m deal will take toy chain back to educational roots
Tim Waterstone is to combine the 215-store Early Learning Centre chain with his five-strong Daisy & Tom clothes and toy chain after buying ELC for �62m.
Waterstone’s private equity firm Eagle Retail Investments has bought ELC from the company’s managers and venture capital company 3i. Eagle is also buying Chelsea Stores, Daisy & Tom’s parent company, in order two merge the two store groups. Waterstone’s partner in Eagle is Nigel Robertson, formerly with Marks & Spencer and online grocery retailer Ocado.
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ELC generates sales of around £170m a year, while Daisy & Tom turns over around £15m. Scottish publishing group DC Thomson, owner of the Beano and the Dandy, has invested around £8m in the deal. Bank of Scotland and venture capital company Rhone Capital are also involved. Waterstone said he plans to take ELC back to its educational roots. The stores have gradually stocked more general lines and branded merchandise in the battle for sales in the highly competitive UK toy market. The stores will also be revamped in a more ‘conservative and upmarket’ format. Both fascias will continue to operate. Daisy & Tom, which is a children’s department store concept, is to expand, with Edinburgh and Glasgow targeted for stores. Chelsea will also look for other retail acquisitions. Waterstone founded the book retail chain that bears his name, now owned by HMV, and last year unsuccessfully bid against Icelandic retailer Baugur for the Hamley’s toy business.
