Key facts
- Spire Healthcare has agreed to a £1 billion takeover by Toscafund Asset Management.
- The deal values the company at approximately £1.03 billion, with an offer of 250 pence per share.
- Toscafund, led by investor Martin Hughes, is Spire's second-largest shareholder.
- Spire operates 38 private hospitals and over 60 clinics across the UK.
- Spire's shares rose 3.2% following the takeover announcement.
Spire Healthcare, the UK's largest private hospital operator, has agreed to be acquired by Toscafund Asset Management, a hedge fund known for its activist investment strategies. The deal values the company at approximately £1.03 billion, with Toscafund offering 250 pence per share. Toscafund, founded by investor Martin Hughes, who is nicknamed 'the Rottweiler,' was already Spire's second-largest shareholder. The takeover follows a period of negotiation and a strategic review initiated by Spire in September to explore a potential sale.
Spire operates 38 private hospitals and over 60 clinics across England, Wales, and Scotland, providing care to over 1.36 million patients annually. The company had previously engaged in discussions with private equity firms Bridgepoint and Triton, but those talks did not result in a deal.
Martin Hughes stated that Toscafund has a history of supporting healthcare businesses and that as a private entity, Spire would gain the flexibility for long-term planning and investment in technology and patient care. Spire's chair designate, Debbie White, noted that the company had experienced "much volatility" due to rising costs without a buyer, and that Toscafund's experience as a major shareholder would ensure continued high standards of care.
Shares in Spire, a constituent of the FTSE 250 index, saw a 3.2% increase in early trading on Monday, reaching around 246 pence. The private healthcare market in the UK has seen significant interest from private equity, driven by factors such as the ongoing NHS backlog, which has led to record numbers of patients using private healthcare services. UK businesses are also increasingly offering private healthcare insurance as an employee benefit. Spire Healthcare reported total group revenue of £1.5bn for the 2025 financial year, a 4.5 per cent increase from the previous year, with 43 per cent of its revenue coming from private medical insurance.