The boards of Ramsay Health Care and Spire Healthcare Group today announced they have agreed a recommended cash acquisition of Spire by Ramsay.
Under the terms of the transaction, Spire shareholders will be entitled to 240p for their shares, with the deal valuing Spire at approximately £999.6 million.
Craig McNally, chief executive and managing director of Ramsay said: “This transaction will enable Ramsay to build on its established reputation for delivering high-quality patient care and outcomes in the UK. The proposed combination builds a broader platform to take advantage of the opportunity for sustained growth in the £5.8 billion UK private hospital sector, with the aim of delivering best-in-class healthcare to all patients. Ramsay and Spire together would lead the way on patient outcomes through bolstered partnerships with private health insurers, the NHS, consultant partners and associated clinical networks.
“We are committed to meeting the needs of the NHS and contributing meaningfully to the publicly funded system which has shown great resilience during the Covid-19 crisis. Ramsay will work closely with the Department of Health & Social Care to ensure all shared objectives are closely aligned and we stand ready to support the NHS in tackling the significant increase in waiting lists and the return of elective procedures in the UK.
“Spire’s track record of serving self-pay and insured patients will increase patient choice at Ramsay. It will enhance our capacity to work closely with our consultant partners and clinicians to ensure further investment in clinical excellence in all our specialties through the provision of multi-disciplinary care to better service both self-pay and insured patients. The transaction will also create the platform to address the growing patient demand for more convenient healthcare through increased investment in digital innovation and transformation.
“We believe that the combined group will provide an exciting opportunity for Spire employees and consultant partners, and look forward to welcoming them to Ramsay in due course.”
Justin Ash, chief executive of Spire said: “I am immensely proud of the Spire business and the tremendous efforts of colleagues across the group who are passionate about providing outstanding personalised care and delivering a positive difference to patients’ lives. Spire has made significant progress towards the strategic goals laid out in 2018, including a material improvement in CQC ratings, strong growth in private payor income, and, more recently, has showcased its strengths and capabilities through its partnership with the NHS during the Covid-19 pandemic.
“The highly complementary combination of Spire and Ramsay presents a unique opportunity to accelerate this progress, will increase choice to private and NHS patients across the UK and will offer a platform where our colleagues, consultant partners, businesses, and broader stakeholder group, including the NHS, can continue to deliver a positive difference to patients.”
Date published: May 26, 2021