UK-based toy retailer The Entertainer has inked an agreement to acquire preschool toy brand, Early Learning Centre (ELC), from rival Mothercare.

The deal, which will be made to The Entertainer’s holding company, TEAL Brands Ltd., requires a payment of about $17.6 million within the next two years.

Mothercare will also retain ownership of about $7.8 million of ELC-related inventory, which it will sell over the next few months.

Mothercare will use the capital infusion to settle down its bank debt by $22.8 million during the next year and expects to close a total of 57 UK stores by the end of this month, as part of its restructuring.