Spire Healthcare considering sale amid shareholder pressure
Spire Healthcare has confirmed it is exploring “a range of potential options” for the business, including a possible sale, after mounting pressure from some of its largest shareholders.
In a statement to the London Stock Exchange, the private hospital group stressed that no decisions have been taken and that it is not in receipt of any approaches or in active discussions regarding a sale.
The company said it has appointed Rothschild & Co as lead financial adviser to support the review, which aims to “enhance long-term shareholder value”.
The announcement followed reports earlier this week that top investors, including Toscafund and Harwood Capital, had urged the company to consider a sale at a price of at least £3.40 a share.
Spire’s market capitalisation stood at £872m as of Thursday’s close, according to LSEG data, though a deal could value the group at more than £1.4bn.
Rising NHS pressure helps boost Spire demand
Spire, which runs 38 hospitals and more than 50 clinics across the UK, has been buoyed by rising demand from patients seeking alternatives to overstretched NHS services.
The number of people waiting for NHS procedures climbed to 7.4m in July, the second consecutive monthly increase, while A&E attendances hit record levels over the summer.
Analysts suggest this environment has helped drive more patients into private healthcare, with Spire also expanding its own NHS partnerships, which now account for more than 30 per cent of revenues.
Prices in these contracts rose by 3.9 per cent in 2024.
Sector experts note that private hospital groups are drawing renewed international interest.
“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”, said Michelle Tempest of consultancy Candesic.
Spire previously rejected a £2.50-a-share bid from Australia’s Ramsay Healthcare in 2021, with shareholders – including Toscafund – arguing the offer undervalued the business.
Some investors are now keen to crystallise gains after Spire’s operational turnaround.
The company said the current review remains at an early stage and may not result in any transaction.