Spire Healthcare has announced it is exploring various strategic options for the business, including a potential sale, following pressure from some of its major shareholders. In a statement to the London Stock Exchange, the private hospital group emphasised that no definitive decisions have been made and that it is not currently engaged in any sale discussions or receiving any approaches.
The company has appointed Rothschild & Co as its lead financial adviser to assist with the review process, which aims to enhance long-term shareholder value. This announcement comes after reports that significant investors, including Toscafund and Harwood Capital, have urged the company to consider a sale at a minimum price of £3.40 per share. As of Thursday’s close, Spire’s market capitalisation was £872 million, according to LSEG data, though a deal could potentially value the group at over £1.4 billion.
Spire, which operates 38 hospitals and over 50 clinics across the UK, has experienced increased demand from patients seeking alternatives to the NHS, which is currently under significant strain. The number of individuals waiting for NHS procedures rose to 7.4 million in July, marking the second consecutive monthly increase, while A&E attendances reached record levels over the summer.
Analysts suggest that this environment has driven more patients towards private healthcare, with Spire also expanding its NHS partnerships, which now contribute to over 30% of its revenues. Prices in these contracts increased by 3.9% in 2024. Industry experts note that private hospital groups are attracting renewed international interest. Michelle Tempest of consultancy Candesic commented, “There is a lot of US appetite for UK hospitals at the moment as private providers in the US are under pressure from Medicaid cutbacks, whereas in the UK there are opportunities to expand.”
In 2021, Spire rejected a £2.50-per-share bid from Australia’s Ramsay Healthcare, with shareholders, including Toscafund, arguing that the offer undervalued the business. Some investors are now eager to realise gains following Spire’s operational turnaround. The company has stated that the current review is still in its early stages and may not result in any transaction.
