Independent hospital group Spire Healthcare Group is acquiring an 87% stake in Claremont Private Hospital in Sheffield.
Spire Healthcare will pay £15.7 million, funded by cash, to acquire the hospital’s operating assets, which are owned by Aspen Healthcare. Spire Healthcare has also entered a long-term lease with Aspen Healthcare’s owner, NorthWest Healthcare Properties REIT, on market-based terms.
Claremont Private Hospital has 46 beds and three operating theatres, and specialises in orthopaedics, general surgery and neurosurgery. In 2019 the hospital generated £20.3 million of revenue, with proforma EBITDA of £2.7 million. The remaining 13% stake is owned by a group of consultants, most of whom have practising privileges at the hospital.
Spire Healthcare stated the acquisition will give the company a presence in South Yorkshire where it is currently without a presence but anticipates a strong future demand for self-pay procedures. The company added that the acquisition is expected to add to its EBITDA and earnings in the first full year, with further opportunities for operating synergies in the medium term through the adoption of Spire Healthcare’s systems, procurement network and practices.
In a release Spire said it will “continue a proactive review of the hospital portfolio, seeking to fill white space in the network through bolt-on acquisitions and management contracts when opportunities arise”.
The deal is expected to complete in late October or early November.
Date published: September 27, 2021