Spire Healthcare Group PLC Investing for growth through hospital acquisition (7375M)
23 September 2021 - 4:14PM
UK Regulatory
TIDMSPI
RNS Number : 7375M
Spire Healthcare Group PLC
23 September 2021
Spire Healthcare Group plc
("Spire Healthcare", "the Company" or "the Group")
Investing for growth through hospital acquisition
23 September 2021
Spire Healthcare Group plc (LSE: SPI), a leading UK independent
hospital group, confirms it has agreed terms to acquire an 87%
stake in the operating assets of the Claremont Private Hospital in
Sheffield. Subject to the conclusion of final contracts, the
hospital is expected to become part of the Spire Healthcare network
in late October or early November.
Claremont Private Hospital provides the Company with a high
quality hospital in South Yorkshire, an area with a large
population where Spire Healthcare currently has no presence, and
where the Group anticipates strong demand for self-pay
procedures.
Under the terms of the acquisition, Spire Healthcare will pay
GBP15.7m, funded by cash, to acquire the operating assets, which
are currently 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, which is rated 'Outstanding' by
the CQC, generated GBP20.3m of revenue, with proforma EBITDA(1) of
GBP2.7m.
The remaining 13% stake is owned by a group of Consultants most
of whom have practising privileges at the hospital.
The acquisition is expected to be accretive to Group 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.
Spire Healthcare 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.
(1) Proforma EBITDA is calculated by taking earnings before
interest, tax, depreciation, amortisation and rent (EBITDAR) in
2019 less current rent cost
For further information please contact:
Spire Healthcare
Cora McCallum, Head of Investor Relations +44 (0)7874 861 656
Instinctif Partners
Damian Reece +44 (0)7931 598 593
Guy Scarborough +44 (0)7917 178 920
Jeremy Durrant +44 (0)7792 918 648
Registered Office and Head Office:
Spire Healthcare Group plc
3 Dorset Rise
London
EC4Y 8EN
Registered number 09084066
About Spire Healthcare
Spire Healthcare is a leading independent hospital group in the
United Kingdom, with 39 private hospitals and eight clinics across
England, Wales and Scotland.
Working in partnership with around 7,500 experienced
consultants, Spire Healthcare delivered tailored, personalised care
to almost 750,000 in-patients and daycase patients in 2020, and is
the leading private provider, by volume, of knee and hip operations
in the United Kingdom.
The Group's well located and scalable hospitals have delivered
successful and award-winning clinical outcomes, positioning the
Group well with patients, consultants, the NHS, GPs and Private
Medical Insurance ("PMI") providers. 90% of Spire Healthcare's
hospitals are rated 'Good' or 'Outstanding' by the CQC (or the
equivalent in Scotland and Wales).
Spire Healthcare treats patients through a variety of routes
including PMI, Self-pay and the NHS, providing the Group with
diversified access to the expected growth opportunities in the UK
healthcare market, which faces significant supply challenges as a
result of NHS budget constraints and increasing demand from a
growing population with longer life expectancy.
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END
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