Maternity retailer Mothercare has agreed to buy the Early Learning Centre (ELC) from its parent company for £85 million.
Chelsea Store Holdings Limited (CSHL) will receive £36 million in cash and the remainder in Mothercare shares as part of the deal, which is subject to shareholder approval.
Mother and baby specialist Mothercare said that its brand and that of children and parenting specialist ELC "fit naturally together".
The firm expects to save £8 million through combining ELC's stores into its own operations, as well as lucratively extending its global reach with a collective presence of 420 international outlets.
"Mothercare and the Early Learning Centre are each specialists in their own markets and the combination of these two brands will create a key destination for parents of babies and young children," said Mothercare chief executive Ben Gordon.
Nigel Robertson, CSHL chief executive, added that Mothercare and ELC working in tandem "makes perfect sense".
"Both brands are recognised for innovation, quality, safety and integrity," he elaborated.
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