Ramsay ups its offer to buy Spire Healthcare

Shareholders of Spire Healthcare Group are set to vote next Monday 12 July on an increased ‘final offer’ from Ramsay Health Care Ltd to buy its 39 hospitals.

The Spire Board said it unanimously believed it was in the best interests of Spire shareholders to vote in favour of the bid, which, at 250 pence a share, is 10p more than the initial offer in May.

Ramsay’s increased offer represents a 30% premium to the share price on the day prior to the announcement of the initial offer and a 41% premium to the three-month average share price prior to the announcement of the initial offer.

Craig McNally, Ramsay’s CEO

Its chief executive and managing director, Craig McNally, said: ‘We are confident that our 250 pence cash offer per Spire share, which was reached after extensive negotiations with the Spire board, is fair and reasonable. It is therefore our best and final offer.’

He said Ramsay had an established reputation for delivering high-quality patient care and outcomes in the UK which it was committed to continuing. 

‘The proposed acquisition of Spire enables us to build a broader platform from which to continue to deliver best-in-class healthcare and lead the way on patient outcomes, through bolstered partnerships with private health insurers, the NHS, our doctors, clinicians and associated clinical networks.’ 

He has previously said he believes consultants face an ‘exciting opportunity’ under the deal, enabling closer working with them and clinicians ‘to ensure further investment in clinical excellence in all our specialties’.

Ramsay is a global healthcare operator delivering a wide range of acute and primary healthcare services to private and public patients from more than 500 locations across ten countries, caring for 8.5m+ patient visits and admissions a year. 

It has operated in the UK market for 15 years.

Together, the two groups would have the largest number of outlets in the £5.8m UK private hospital market.

Ramsay UK works with over 3,000 consultants, runs 37 facilities, including three neurological rehabilitation centres and a mobile diagnostic scanning fleet, and is a leading independent provider to the NHS and a leader for electronic referrals from GPs.

Spire works with around 7,500 consultants and also has eight clinics.