Private Equity Giants Circle £1.5bn Takeover of Spire Healthcare
Britain's largest private hospitals operator, Spire Healthcare Group, has become the target of a major private equity takeover bid that could see it disappear from the London stock market. Sky News has learned that buyout firms including Bridgepoint and Triton Partners are actively exploring bids for the healthcare giant, with a potential deal valued at approximately £1.5bn.
Private Equity Interest Intensifies
Bridgepoint and Triton Partners are among several private equity groups expressing serious interest in taking Spire Healthcare private. City sources confirm that these firms have registered their interest ahead of a deadline set by the company's advisers this week. The process is being managed by investment bank Rothschild, which has received approaches from multiple potential bidders.
Other financial investors including Advent International and Bain Capital have also made contact with Rothschild, though they are not expected to progress further in the bidding process. The interest comes amid pressure from Spire's major shareholders who have been pushing for corporate action to address the company's declining share price performance.
Spire's Board Engages with Prospective Bidders
Chaired by City grandee Sir Ian Cheshire, who previously ran Kingfisher (parent company of B&Q) and now chairs commercial property group Land Securities, Spire's board is reportedly keen to advance discussions with prospective bidders in the coming weeks. Insiders suggest that if negotiations progress smoothly, a takeover deal could be agreed within the next few months.
The company's leadership is actively evaluating options to drive long-term sustainable shareholder value, including potential sale scenarios and value generation from its substantial property estate. Much of Spire's hospital property portfolio is owned on a freehold basis, representing significant underlying asset value.
Bridgepoint's Intriguing Connection
Bridgepoint's interest in Spire Healthcare carries particular significance due to historical connections. The private equity firm previously owned Oasis Dental Care, a major dentistry chain, during a period when it was run by Justin Ash - who now serves as chief executive of Spire Healthcare. This existing relationship could potentially smooth the path for negotiations.
Triton Partners brings substantial healthcare investment experience to the table, currently owning assets such as Pharmanovia, a specialty producer of prescription medicines. Their expertise in the healthcare sector makes them a credible potential owner for Spire's extensive operations.
Spire's Market Position and Operations
Spire Healthcare operates nearly 40 of Britain's largest private hospitals, making it the country's dominant private healthcare provider. Beyond its hospital network, the company runs more than 50 clinics, medical centres and consulting rooms across the UK. It holds the distinction of being the largest provider of hip and knee operations in the country.
The company's comprehensive healthcare services include:
- A network of private GP practices
- Occupational health services for hundreds of corporate clients
- Collaboration with nearly 9,000 medical consultants
- Employment of thousands of healthcare professionals
In 2024 alone, Spire delivered care to over 1.3 million patients, demonstrating its significant role in the UK healthcare landscape. While private hospital capacity has increasingly been allocated to perform routine operations for NHS patients, budget constraints have limited the number of such procedures being carried out.
Financial Performance and Shareholder Pressure
Spire's financial performance has shown some challenges, with the company recently indicating that full-year adjusted earnings before interest, tax, depreciation and amortisation would be at the lower end of a forecast range of £270m-£285m. The company's share price has declined by more than 23% over the last year, closing at 178.2p on Friday, giving Spire a market capitalisation of just under £725m.
Major investors have been pushing for corporate action to address the flagging share price, including exploring options to realise value from the company's substantial property holdings. Any successful takeover bid would need to offer a significant premium to the current share price level to secure backing from major shareholders.
Historical Context and Ownership Structure
Spire Healthcare was formed in 2007 when BUPA sold its hospitals division to private equity firm Cinven. Currently, a 29.9% stake in the company is owned by Mediclinic Group, a private healthcare provider established in South Africa in 1983. The company previously rejected a 250p-a-share offer from Australia's Ramsay Healthcare in 2021, with shareholders declaring the proposal undervalued the business.
As discussions progress, spokespeople for Spire Healthcare, Advent International, Bain Capital, Bridgepoint and Triton Partners have all declined to comment on the potential takeover negotiations. The coming weeks are expected to reveal whether this significant private equity interest will translate into a formal takeover offer for Britain's largest private hospitals operator.
