Investing for growth through hospital acquisition

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 £15.7m, 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 £20.3m of revenue, with proforma EBITDA¹ of £2.7m.

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	[phone]
Instinctif Partners  Damian Reece Guy Scarborough Jeremy Durrant	[phone] [phone] [phone]

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.

 

END

 

 

ACQEAKNDAEFFEEA