Spire Healthcare has confirmed a £1 billion takeover by private equity, marking its exit from the London stock market. The private hospital group accepted an offer of 250 pence per share from a consortium including funds managed by Toscafund, Three Hills, and Ares.
This deal concludes a four-month process that saw the takeover deadline extended five times as Toscafund finalized its financing arrangements. The transaction will also lead to an overhaul of Spire's board, with chief executive Justin Ash stepping down. Sir David Sloman, non-executive director and vice chair, will assume the role of interim chief executive.
Spire pointed to ongoing macroeconomic volatility, inflationary pressures, and subdued investor sentiment in the UK as reasons for its departure. Chair-designate Debbie White stated that "There are further steps required to deliver the Company's standalone plan and uncertainty and execution risk to doing so." White also noted that while the long-term prospects for independent healthcare in the UK are strong, "the trajectory has demonstrated much volatility in recent years and the ongoing cost pressures have been material, including from increases in national insurance contributions and the national minimum wage."
This development adds to concerns that the London market is experiencing a wave of exits by mid-cap firms. Last week, three other companies announced intentions to delist following takeover approaches: FTSE 250 industrials firm Bodycote, telecoms company Gamma Communications, and Capricorn Energy, which is set to be acquired by a Norwegian oil firm.
Toscafund, managed by hedge fund tycoon Martin Hughes, initially tabled its bid on May 14 at a 66% premium to Spire Healthcare's closing price, valuing the company at approximately £1 billion. Toscafund had previously built a nearly 11% stake in Spire and opposed a 2021 offer from Australia's Ramsay Healthcare. It has since increased its holding to around 18%.