Spire Healthcare Group has agreed to be acquired by a consortium comprising funds managed by Toscafund Asset Management, Three Hills and Ares in a transaction valuing the British private healthcare company at approximately £1.026 billion ($1.39 billion). The agreement follows months of takeover discussions and multiple extensions to the deadline for a formal offer, according to Reuters.
The consortium is offering 250 pence per Spire share, representing a 66% premium to the company’s market capitalization on May 13, the final trading day before Spire disclosed that it had received a takeover proposal.
The agreed price was also the highest proposal Spire received during its strategic review, according to the company.
Spire operates 38 hospitals and more than 55 clinics. The company has been working to strengthen the quality of its care, diversify its revenue streams and improve operating efficiencies.
However, Spire Chair-Designate Debbie White pointed to volatility in the healthcare sector and continued cost pressures, including increases in UK national insurance contributions and the national minimum wage.
The takeover agreement was reached shortly before the latest deadline for Toscafund and its partners to submit a formal proposal. Spire had previously extended the deadline several times while negotiations continued.
Shareholders representing approximately 53.4% of Spire’s outstanding stock have agreed to support the takeover offer, giving the consortium significant backing for the transaction.
Spire is being advised on the transaction by Rothschild & Co, Perella Weinberg, J.P. Morgan Cazenove, Lazard and Berenberg. The acquiring consortium is being advised by Darblay Capital.
