The private equity arm of the Ontario Teachers’ Pension Plan has bought nursery provider Busy Bees from education company Knowledge Universe, adding to the growing number of direct UK mid-market deals by Canadian pension plans.

Teachers' Private Capital, which has assets under management of around $12 billion, began talks with the nursery provider and Knowledge Universe in summer 2012, according to a person close to the deal. They said that the deal is valued at around £220 million.