The UK's largest operator of private hospitals, Spire Healthcare Group, is currently engaged in advanced discussions regarding a potential £1.5 billion takeover. This significant move could result in the company becoming the latest FTSE-250 firm to disappear from the London Stock Exchange, continuing a trend of departures from the UK's public markets.
Private Equity Interest and Company Profile
Private equity firms, including Bridgepoint and Triton Partners, are actively exploring bids for Spire Healthcare. The company operates a substantial network of nearly 40 private hospitals across the United Kingdom, including key facilities in Birmingham and Solihull. In total, Spire manages 38 hospitals and more than 50 clinics nationwide.
The healthcare provider works collaboratively with almost 9,000 consultants and employs thousands of staff members. In 2024 alone, the organisation delivered care to over 1.3 million patients, demonstrating its significant role within the UK's healthcare landscape.
Board Evaluation and Shareholder Pressure
Following a Sky News report in September, Spire Healthcare confirmed it was "actively evaluating actions that could drive long-term sustainable shareholder value." The company reiterated this position in December, stating it had commenced discussions with multiple parties regarding various potential options.
These options may include, but are not limited to, a potential sale of the company, value generation from its hospital property estate, and increased strategic focus on private payors. Sir Ian Cheshire, chairman of Spire, commented last year that the board believed the company was "undervalued by the market given its strategic progress and property underpin."
Shareholder Perspectives and Analyst Commentary
Harwood Capital Management, which owns approximately 5% of Spire, is among the shareholders urging the company to review a possible sale. The investment firm stated that Spire's current share price fails to reflect the company's true value, particularly highlighting its unencumbered hospital portfolio worth over £1.4 billion.
Panmure Liberum analyst Seb Jantet noted that today's news "isn't really a massive surprise given the share price performance." He added that "the property value isn't hidden – Spire are quite open about it and Spire has been the subject of bid speculation for years."
The board has appointed Rothschild to assess a range of strategic options while maintaining focus on delivering both corporate strategy and outstanding personalised care for patients. This development represents a significant moment for the UK's private healthcare sector and the London stock market's mid-cap segment.
