Making Waves: Water Babies Swims into a New Era with American Investment

The world’s largest baby & toddler swim school, Water Babies, has been acquired by Elmsley Capital (Elmsley) and Westerly Group (Westerly). This change of hands will provide a springboard for Devon-based Water Babies Group Ltd 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 swimcredible years, Water Babies founder Paul Thompson is hanging up his trunks and passing the goggles to new owners. Paul 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. 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

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.

Ross, Paul, Howard & Brian from Water Babies

L-R: Ross, Paul, Howard & Brian from Water Babies

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

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