Britain’s Largest Private Hospital Operator Considers Takeover

Britain’s largest private hospital operator is negotiating with a number of buyout firms over a takeover that would see it become the latest company to disappear from the London Stock Exchange.

Potential Bidders

Private equity firms including Bridgepoint and Triton Partners are considering bids for the company, which runs almost 40 of the UK’s largest private hospitals. City sources said the pair were among a broader group of parties that had expressed interest in making offers to the company before a deadline set by its advisers.

Interested Parties

Advent International and Bain Capital are also said to have contacted the company’s advisers, but no further progress is expected. A number of other financial investors and foreign trade buyers are also believed to be part of the process, which was initiated following pressure from major shareholders.

Company Overview

The company operates more than 50 clinics, medical centers, and consultation rooms across the UK, and is the largest provider of hip and knee surgeries in the country. It also operates a network of private GP practices and provides occupational health services to hundreds of corporate clients. In total, it works with almost 9,000 consultants and employs thousands of people.

Financial Performance

In 2024, over 1.3 million patients were treated. The company’s full-year adjusted earnings before interest, tax, depreciation, and amortization would be at the lower end of a forecast range of £270 million to £285 million. The company’s stock has fallen more than 23% in the last year, and it closed at 178.2p on Friday, giving the company a market capitalization of just under £725m.

Takeover Talks

If a takeover agreement is reached, it is expected to be completed within the next few months. The company’s board is said to be keen to progress talks with potential bidders in the coming weeks. To attract the support of major investors, any offer would have to be at a very significant premium to the current market capitalization.

History

The company was founded in 2007 when BUPA sold its hospital division to private equity firm Cinven. A 29.9% stake in the company is now owned by Mediclinic Group, a private healthcare provider founded in South Africa in 1983. In 2021, some of the company’s leading shareholders rejected a 250 pence per share offer from an Australian company, saying the offer undervalued the company.