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Toscafund-backed consortium agrees deal to take Spire Healthcare private
The offer values Spire at about £1.03bn and would pay shareholders 250p per share, a roughly 66% premium to the stock’s 13 May close.
Toscafund Asset Management is set to take UK hospital operator Spire Healthcare private as part of a consortium transaction valued at approximately £1.03bn, according to Hedgeweek citing a report by the Independent.
The deal will be carried out through a newly established vehicle, Tulip UK, backed by funds advised or managed by Toscafund, THCP Advisory and Ares Management. Toscafund, which already holds the company as its second-largest shareholder, had been in discussions with Spire for several months before the talks became public.
Under the agreed terms, Spire shareholders will receive 250p per share, a premium of around 66% versus Spire’s closing price on 13 May. Spire, which operates 38 hospitals and about 55 clinics across England, Wales and Scotland, along with private GP practices and occupational health services for more than 1,400 employers, will be taken off the London market amid a UK healthcare sector facing cost inflation and muted investor sentiment.
Tulip UK plans a further review lasting up to 12 months after completion, including an assessment of Spire’s primary care operations. The consortium’s offer document says that review could lead to disposals in the private GP business and a corresponding reduction in Spire’s workforce, while Toscafund expects to pursue a longer-term investment strategy away from public market pressure.