Spire Healthcare has agreed to a recommended £1.03bn takeover by a consortium backed by investment firms Toscafund, Three Hills and Ares. The consortium will make the offer through Tulip UK Bidco, with Spire stakeholders set to receive 305p in cash for each share they hold.
The company’s board has unanimously recommended the transaction, with directors intending to vote in favour of the deal, subject to the satisfaction of the offer’s conditions.
The consortium said the acquisition would provide a platform to support Spire’s long-term growth and investment strategy following increased demand for private healthcare services creating opportunities across the business.
Spire operates 39 hospitals and more than 50 clinics, medical centres and consulting rooms across England, Wales and Scotland, providing services spanning diagnostics, consultations, surgery and other specialist healthcare treatments.
Debbie White, chair-designate of Spire, said: “Spire has made significant progress in executing its strategy to strengthen care quality, diversify revenue streams and drive efficiencies across the UK’s largest independent integrated healthcare network.
“Notwithstanding this progress, there are further steps required to deliver the Company’s standalone plan and uncertainty and execution risk to doing so. The long-term prospects for independent healthcare in the UK are strong, but the trajectory has demonstrated much volatility in recent years and the ongoing cost pressures have been material, including from increases in national insurance contributions and the national minimum wage.”
She added: “As an experienced healthcare investor and the Company’s second largest shareholder, Toscafund has deep knowledge and experience of the business and its operations and Toscafund has assured the Board of Spire that it is committed to providing the highest standards of care to patients.”
Martin Hughes, chief executive of Toscafund, said: “As Spire’s second-largest shareholder, we know the business well and believe strongly in its future. Our offer reflects our confidence in the care Spire’s hospitals provide, the people who deliver it and an ambition to achieve even more. Toscafund has a track record of backing successful healthcare businesses to grow and improve.
“As a private company, Spire would have the freedom to plan for the long term and the agility to move faster: investing in its hospitals and people, putting the latest technology to work and setting new standards in patient care.”
