Spire Healthcare Agrees to £1bn Takeover by Private Consortium

Spire Healthcare (SPI), the British private hospital operator, has agreed to be acquired by a consortium of investment funds comprising Toscafund Asset Management, Three Hills Capital Partners and Ares Management, in a transaction valuing its share capital at approximately £1.03bn ($1.39bn).

The offer, at 250 pence per share, represents a premium of 66 per cent to Spire's market capitalization as of May 13, the last trading day before the company disclosed it had received an approach. The agreement was reached shortly before a negotiating deadline lapsed.

Debbie White, Spire's chair-designate, said the group — which operates 38 hospitals and more than 55 clinics across the UK — had made meaningful progress in strengthening care quality, broadening revenue streams and improving operational efficiency. She cautioned, however, that the sector's outlook remained volatile, with sustained cost pressures stemming from increases in national insurance contributions and the national minimum wage.

"Having conducted a comprehensive strategic review, the board is satisfied that the acquisition represents the best available outcome for Spire shareholders," White said, adding that the 250-pence-per-share figure was the highest proposal received during that process.

Shareholders representing 53.4 per cent of Spire's issued share capital have irrevocably committed to support the offer. Spire was advised by Rothschild & Co, Perella Weinberg, J.P. Morgan Cazenove, Lazard (LAZ) and Berenberg. The acquiring consortium was advised by Darblay Capital.