Water Babies acquired by  Elmsley Capital and Westerly Group

The world’s largest baby & toddler swim school, Water Babies, has been acquired by Elmsley Capital  and Westerly Group.

This change of hands will provide a springboard for Devon-based Water Babies Group to build on its success in the UK and existing international markets.

Elmsley and Westerly have a history of partnering together to support and grow established brands within the youth enrichment space, and Water Babies will leverage their collective experience in positioning the business for further international expansion within the U.S. market.

After 22 years, Water Babies founder Paul Thompson is stepping down but will remain involved in the business as a Non-Executive Board Director.

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, The Netherlands, China and the USA.

Interview: Paul Thompson, Water Babies founder

With the support of over 70+ franchise outlets and around 600 teachers, Water Babies has won numerous consumer awards and established partnerships with bodies such as Swim England and the Royal Lifesaving Society.

Water Babies is widely regarded as the leading authority on baby swimming in the UK.

Following Water Babies acquisition of a USA swim school in Seattle, it is clear there is a significant opportunity to expand the brand into the USA.

This follows updated 2019 guidance from the American Academy of Pediatrics recommending that formal swim lessons can start as early as age 1.

Research shows early lessons can significantly reduce the risk of drowning, the leading cause of accidental death in children aged 1-4.

The U.S. swim market is valued at around $3.5B - nearly 10 times the size of the UK.

Water Babies is poised to bring its world-leading program to the USA, offering its innovative aquatic program to American families with a new drive from Elmsley and Westerly.

Westerly and Elmsley both focus on long-term support to growing businesses in the children’s education space.

Unlike a traditional financial buyer, they 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.

Ross Brendel, managing partner of Westerly, and Brian Burke, managing partner of Elmsley, are passionate about the child enrichment space as both parents of

children in Water Babies’ core demographic and investors.

They will serve on the Company’s Board of Directors.

Howard Harrison, Group CEO of Water Babies said; “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. We have spent a long time with Westerly and Elmsley, 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, Water Babies Founder said; “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 with the excellent support of Ross and Brian; we could not have found better custodians.”

Ross Brendel, Managing Partner of Westerly Group said; “From the moment we met Paul, Howard, and the broader team, it was clear there was a rare passion driving Water Babies. The immense focus on all stakeholders—children, parents, team members, and franchise owners—is what has allowed Water Babies to become a household name in swimming education."

Gateley Legal’s team was led by partner and London head of corporate Zum Mohammed, supported by corporate senior associate Enes Ilgun, corporate associate Hannah Hogarth, corporate solicitor Paige Richardson, tax partner Bernhard Gilbey, tax senior associates Anamika Pandey and David Williams, banking partner John Hayward and banking solicitor Jordan Powell.

Zum Mohammed commented: “We are thrilled to have advised Elmsley Capital and Westerly Group on their co-investment in Water Babies. Our Corporate team has extensive expertise in acting on cross-border private investments, and this transaction highlights our ability to navigate multi-jurisdictional investment structures efficiently. We look forward to seeing Elmsley and Westerly thrive as co-investors as they lead Water Babies through its next phase of growth.”

The Browne Jacobson team included partner Nigel Blackwell, senior associate Matt Dorman and associate Alys Bratch, who acted for the shareholders on the sale. Partner Gareth Davies and associate Ffion Morgan acted for management investing in the buyer’s group.

Matt Dorman, Senior Associate at Browne Jacobson, said:

"We’re thrilled to have advised the Water Babies team on this transaction. Supporting UK-based firms on international growth is something we pride ourselves on, and the success of this transaction is a testament to that. We look forward to seeing Water Babies grow from strength to strength in their global endeavours."