Transaction

World’s largest baby and toddler swim school receives investment to bolster international growth

Transaction

Sale of Water Babies to Elmsley Capital and Westerly Group

Sell-side

Undisclosed

Role

Adviser to Water Babies on its sale to Elmsley Capital and Westerly Group

Sector

Consumer

Region

United Kingdom

We have advised Water Babies Ltd (Water Babies), the world’s largest baby and toddler swim school, on its sale to Elmsley Capital (Elmsley) and Westerly Group (Westerly).

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. Water Babies will leverage Elmsley and Westerly’s collective experience in positioning the business for further international expansion within the U.S. market. 

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 US. 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. 

The new owners recognise the amazing work that has been put into the organisation by all of its staff and franchisees and will continue with the well-loved business as usual in the UK and internationally. 

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. 

In addition, Water Babies founder Paul Thompson will move to a Non-Executive Board Director role. 

cute little baby swimming underwater mother

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 has built a truly remarkable business and we are excited and ambitious about the potential to grow his vision globally.

Howard Harrison, Group CEO, Water Babies
cute little baby swimming underwater mother

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.

Paul Thompson, Founder, Water Babies

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. We are honoured to be a part of continuing that legacy in the UK, while bringing Water Babies exceptional offering to more families throughout the world.

Ross Brendel, Westerly Group, Managing Partner

This transaction underscores the tremendous potential in the early years education sector, and we are delighted to have supported our client in achieving a successful exit for Paul and the right partner for Howard and his team. Partnering with a global investor brings new opportunities for growth and innovation, ensuring the brand’s continued expansion and success. We look forward to seeing the brand reach new heights under its new ownership.

Joe Dyke, Partner, Clearwater

Advisers

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