A BUSINESSMAN who started a nursery school company because of the trouble he had finding a place for his two daughters is £22m richer after selling his stake in the firm.

Darlington businessman Duncan Bannatyne has sold Just Learning, which is one of the country's top ten children's day nursery operators, to Alchemy, the venture capital group which unsuccessfully tried to buy car maker Rover.

Mr Bannatyne started the business with former Darlington MP Michael Fallon in 1995 and opened its first nursery in the Cockerton area of the town.

Mr Bannatyne provided the cash, while Mr Fallon designed the curriculum to give children an early grasp of reading, writing and arithmetic.

Within years the venture had grown into a substantial chain of nurseries in towns and cities around the country, and there are now 21 Just Learning centres.

Alchemy, which will take over Mr Bannatyne's original controlling stake in the business, aims to expand the chain to as many as 40 during the next five years.

The company will invest £7.5m in the venture, with Mr Fallon still operating as chief executive.

Mr Bannatyne said yesterday: "Just Learning is a marvellous success story and needed an investor that will take it further.

"It has grown and become profitable by delivering high-quality nursery services to children across the country and I am confident Alchemy has the energy, talent and resources to lead the business forward.

"My own focus is now on the leisure sector, where Bannatyne Fitness has become the UK's largest independently-owned health club operator.

"The sale of Just Learning frees up millions of pounds to invest in the leisure sector.

"I am now determined that Bannatyne Fitness will grow into a dominant force in the sector and I am aiming to have established 40 clubs in three years' time."

But, despite its success, the venture sparked criticism from politicians after Mr Fallon, a former Tory trade and industry spokesman, failed to declare business interests. He was subsequently moved to a lesser post in the shadow Treasury team.

Mr Fallon said: "It is a great deal. We are now free to expand after Duncan's exit, and we plan to be one of the top three operators."