Spire Healthcare agrees to £1bn takeover by investment consortium

Spire Healthcare, the largest private hospital operator in the United Kingdom, has agreed to a takeover by a consortium valuing the company at approximately £1.03 billion. The acquisition will take the healthcare group off the London stock market.

The deal is being executed through a newly established vehicle, Tulip UK, which is backed by funds managed or advised by Toscafund Asset Management, THCP Advisory, and Ares Management. Toscafund, led by Martin Hughes, was already the second-largest shareholder in Spire.

Under the terms of the agreement, Spire shareholders will receive 250p per share, which represents a premium of roughly 66% compared to the company’s closing price on May 13. Spire operates 38 hospitals and over 55 clinics across England, Wales, and Scotland, serving millions of patients.

Following the completion of the acquisition, Tulip UK intends to conduct a review lasting up to 12 months. This review will include an assessment of Spire’s primary care operations, which could potentially lead to the disposal of parts of the private GP business and subsequent workforce reductions.