THE UK's largest nursery chain has been formed with the merger of two leading childcare and education providers.

Asquith Court Nurseries and Kidsunlimited joined to create Nursery Years Group, which will operate 145 nurseries and crches nationwide. The deal will bring the united group pro-forma sales for the 12 months to April this year of £45m.

Asquith, which operates a nursery in Stockton, was established in 1989 and underwent a management buyout, backed by West Private Equity, in May 2001.

Kidsunlimited, established in 1983, is one of the UK's longest established nursery operators, with a particular emphasis on nurseries in the workplace, and has been backed by Isis Equity Partners since June 2001.

The deal is expected to prompt further consolidation within the fragmented childcare market as Nursery Years plans to acquire sole businesses and rival chains.

The enlarged group will continue to trade as Asquith Nurseries and Kidsunlimited.

Phil Rhodes, the chief executive of Nursery Years, said: "High quality early-years childcare is growing rapidly - up 12 per cent between 2002 and 2003 alone. Demographic trends, changing childcare preferences and government support for subsidised nursery education are the key factors driving this growth."

Published: 27/04/2004