Shares in Spire Healthcare surged as much as 20% on Monday after the private hospital operator confirmed it was in preliminary talks with several buyout firms, fuelling expectations of a potential takeover and delisting from the London Stock Exchange.
The FTSE 250-listed group said Bridgepoint Advisers and Triton Investments Advisers were “amongst the parties” involved in discussions to explore strategic options.
The confirmation followed media reports over the weekend and prompted a sharp rally in the stock, which had been under pressure for months.
Despite the market reaction, Spire cautioned that discussions were at an early stage and stressed there was no certainty that any offer would emerge.
Early-stage talks follow strategic review
The company first announced a strategic review of its operations in September, saying it was in talks with several parties, including potential buyers.
Since then, Spire’s shares had fallen almost 14%, reflecting investor uncertainty over its outlook and the prospects of a transaction.
As part of the review, Spire has appointed Rothschild & Co as its financial adviser.
The group reiterated on Monday that discussions remain preliminary, with no guarantee of a deal being agreed.
Reports have suggested that prospective buyers were asked to submit expressions of interest by January 20, a move that appears to have accelerated speculation around a sale to private equity.
Asset-rich portfolio draws investor attention
Spire operates 38 hospitals and more than 50 clinics, medical centres and consulting rooms across England, Wales and Scotland.
Its estate includes assets such as the Claremont Hospital in Sheffield and St Anthony’s Hospital in south London.
Founded in 2007 through the acquisition and rebranding of 25 Bupa hospitals, the group listed on the stock market in 2014 and later expanded through further acquisitions and the construction of new hospitals in Manchester and Nottingham.
The company has faced sustained pressure from shareholders, led by Harwood Capital Management, which has argued that Spire’s share price does not fully reflect the value of its unencumbered hospital portfolio, estimated to be worth more than £1.4 billion, or its occupational health business.
In response, the board, chaired by former Kingfisher chief executive Sir Ian Cheshire, launched the strategic review.
Profit outlook and NHS exposure weigh
Operationally, Spire has delivered mixed signals.
In December, the company said it expected annual adjusted core profit to come in at the bottom end of its guidance range of £270 million to £285 million.
While demand for privately funded treatment has increased, supported by more patients paying out of pocket or using health insurance, work carried out on behalf of the NHS has slowed.
NHS-related activity accounts for around 30% of Spire’s revenue and has historically provided a stable income stream.
The group has pointed to budget constraints at integrated care boards, which replaced clinical commissioning groups in England in 2022, as a key factor behind weaker NHS volumes.
It has also warned that proposed NHS tariff increases for 2026-27 fall well below inflation, creating uncertainty across the sector.
Debate over private sector role in healthcare
Chief executive Justin Ash has argued that closer collaboration between private providers and the NHS can help cut waiting lists and support economic growth by returning more people to work.
However, the expanding role of private healthcare has sparked concerns about creeping privatisation and the emergence of a two-tier system.
Health secretary Wes Streeting has defended the use of private providers while insisting they must support, rather than drain, NHS resources.
Against this backdrop, Spire’s talks with buyout firms are likely to draw political as well as investor scrutiny as they unfold.
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