Education and training firm Nord Anglia Education is selling the business to Australian nursery operator ABC. It plans to combine Leapfrog with its existing Busy Bees chain.
The new business will feature 134 nurseries across the country, offering around 12,500 childcare places.
Nord Anglia Education is selling the Leapfrog business as the division has faced tougher competition in the childcare market in recent times.
It paid £60m for the business in 2004. There are five nurseries in the region, with sites in Altrincham, Fallowfield, Cheadle, Northwich and Sale.
The deal saw Nord Anglia move its headquarters from Cheadle to Buton-upon-Trent.
Since 2004, more nursery operators have entered the market, leading to a glut of childcare places and lower fees and occupancy rates.
In the past three years, Nord has closed or sold off 13 poorly performing Leapfrog nurseries, leaving it with a chain of 88 sites and around 2,500 staff.
The Leapfrog division made underlying losses of £3.5m in the year to August 31 2006.
The company sees more potential in its international schools business, which runs schools providing a British-style education in central Europe and the Far East, and its learning services business, which gives best practice support and training to schools.
The international schools business is based in Cheadle.
Nord said: "We believe that the disposal will leave Leapfrog well-placed to move forward under a sympathetic owner committed to the UK nurseries market."
ABC, which owns nurseries in New Zealand and the US as well as Australia, bought Busy Bees for £70m last year.
Busy Bees, based in Lichfield, Staffordshire, also runs a voucher system for working parents in tandem with major companies including Asda, Sainsbury's and BAE Systems to ease the costs of childcare.
Eddie Groves, chief executive of ABC, said: "This second UK acquisition is an excellent fit with the existing Busy Bees group and we expect to achieve significant efficiencies from its integration."
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