Baby & toddler swim school, Water Babies, has been acquired by Elmsley Capital and Westerly Group in a deal that will provide a springboard for the Group to build on its successes in the UK and existing international markets. Elmsley and Westerly, for their part, have a history of partnering together to support and grow established brands within the youth enrichment space. Water Babies will leverage their collective experience in positioning the business for further international expansion within the U.S. market.
As a result Water Babies founder Paul Thompson is hanging up his trunks and passing the goggles to new owners after 22 years. He will remain involved in the business as a Non-Executive Board Director, however. As Thompson put it: “There are many mixed emotions when selling the business you founded 22 years ago, but the overriding feeling is one of great excitement for the next chapter of Water Babies. It has a fabulous team, from top to bottom and a very special culture and it is now time for the next generation to shine.”
Since its inception, Water Babies has grown into the world’s largest baby swim school, today teaching more than 80,000 babies every year through a network of family run franchise businesses across the UK, Ireland, Canada, Germany, The Netherlands, China and the USA. With the support of over 70+ franchise outlets and around 600 teachers, it has won numerous consumer awards and established partnerships with bodies such as Swim England and the Royal Lifesaving Society.
Meanwhile – given updated 2019 guidance from the American Academy of Pediatrics recommending that formal swim lessons can start as early as age 1 – the options for U.S. expansion are clearly there. Research has shown that early lessons can significantly reduce the risk of drowning – the leading cause of accidental death in children aged 1-4. And with the U.S. swim market, at around $3.5B, nearly 10 times the size of the UK, Water Babies will have the opportunity to take its world-leading program across the pond.
Elmsley and Westerly, unlike traditional financial buyers, are backed by permanent family capital, free from the demand to realise immediate gains, and balance commercial returns with the desire to invest in sustainable, long-term growth to benefit future generations.
As Howard Harrison, Group CEO of Water Babies noted: “Bringing new ownership into Water Babies has been part of our strategy for a long time. When we started this process we were keen to identify a strategic investor that could help us drive international growth and provide the support to take it to the next level.
He added: “We have spent a long time with Elmsley and Westerly, visiting their early education portfolio business in the US and understanding how they operate to ensure it is a great addition to our way of working. With their support Water Babies can now look forward to a new exciting chapter. Paul Thompson has built a truly remarkable business and we are excited and ambitious about the potential to grow his vision globally.”
