Deal widens international reach
Mothercare has completed the acquisition of Chelsea Stores, owner Early Learning Centre.

After its proposal was accepted in May, the baby and maternitywear group said its aim was to create destination stores for parents of young children around the world.

Seymour Pierce analyst Richard Ratner said: 'The acquisition of Early Learning Centre has been completed and the consideration shares issued. As a result, we increase our estimates for the current year, from£24.5 million to£31.58 million, with profits geared to the second half. For the following year, we increase our pre-tax estimate from£26.8 million to£34.5 million.'

The deal, worth£85 million, has given Mothercare a combined 435 UK stores and 420 international franchise stores. The consideration has been in the form of Mothercare ordinary shares and the assumption of Chelsea Store's net debt of about£36 million.

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