Buyout Firms Plan £1.5bn Takeover of Spire, Private Hospital Leader
Spire Healthcare Group, the largest private hospital operator in the UK, is in discussions regarding a potential £1.5 billion takeover. This move could lead to the company’s exit from the FTSE-250 index, marking a significant shift in the London stock market landscape.
Buyout Firms Interested in Spire Healthcare
Among the private equity firms exploring bids are Bridgepoint and Triton Partners. These firms are part of a larger group interested in acquiring Spire. City sources revealed that the interested parties are working under a deadline set by Spire’s advisers.
Other firms, including Advent International and Bain Capital, have also shown interest. However, they are not expected to advance further in the bidding process.
Board Leadership and Future Discussions
Spire’s board is chaired by Sir Ian Cheshire, a notable figure who has led various large organizations, including Kingfisher, the parent company of DIY chain B&Q. The board is eager to advance discussions with potential bidders in the upcoming weeks.
Insiders suggest that if negotiations move forward, a deal could be reached within the next few months.
Company Overview and Services
Spire operates nearly 40 hospitals and over 50 clinics and medical centers throughout the UK. It is recognized as the leading provider of hip and knee operations in the country. In addition, it runs private GP practices and offers occupational health services to numerous corporate clients.
- Number of consultants: Nearly 9,000
- Employees: Thousands
- Patients served in 2024: Over 1.3 million
Investment Dynamics and Corporate Strategy
Major shareholders are pressing for strategic actions to boost Spire’s faltering share price. This includes reviewing options to unlock value from its property holdings, much of which Spire owns freehold. A review by Spire confirmed that it is actively exploring various strategies for enhancing shareholder value.
In a trading update, Spire indicated that it anticipates its full-year adjusted earnings before interest, tax, depreciation, and amortization to be at the lower end of the £270 million to £285 million range.
Market Position and Historical Context
Founded in 2007 after BUPA sold its hospitals division to Cinven, Spire has seen a decline in its stock value. The company’s shares have dropped by over 23% in the past year, closing at 178.2p last Friday, resulting in a market capitalization of approximately £725 million.
In 2021, Spire’s top shareholders turned down a £2.50 per share offer from Australia’s Ramsay Healthcare, citing that it undervalued the business. Moving forward, a potential offer for Spire will need to exceed its current stock price significantly to gain the support of key investors.
Representatives from Spire, Advent, Bain, Bridgepoint, and Triton have not commented on the ongoing discussions.
