The chief executive and chair of Spire Healthcare have stepped away amid a £1bn takeover of the London-listed private hospital group.
Veteran boss Justin Ash has said he will retire from the group as it “enters a new phase with strong foundations” under its new ownership by a consortium of investors.
Spire’s board have agreed a takeover by Tulip UK Bidco, a new company comprising British investment firm Toscafund, UK private equity firm THCP Advisory and California-based investment manager Ares.
The 250p-per-share deal values the takeover at £1.03bn and constitutes a 66 per cent premium to Spire’s share price at the start of May, when Toscafund made its first approach.
Alongside Ash’s departure as chief executive, chairman Sir Ian Cheshire will also step away. Sir David Sloman, who has helmed a number of NHS trusts, will take the reins as interim chief executive while former Co-op chair Debbie White will become interim chair.
“Under [Ash’s] leadership, Spire Healthcare has evolved from a hospital-only business into a leading integrated healthcare company,” White said.
White stepped down as chair of Co-op with immediate effect last month, following a tenure mired by a disastrous cyberattack and disputed claims of a “toxic” work culture.
Announcing their takeover of Spire, the consortium said the value of the healthcare group’s freehold property assets is not reflected in its share price.
“The Bidco board believes that taking the Spire Group private pursuant to the acquisition would provide strategic and financial flexibility to unlock long-term stakeholder value,” it said.
Shares in Spire closed at 242p on Friday, up 15 per cent from its IPO in July 2014. The group’s share price more-than-doubled when Toscafund’s takeover interest was first disclosed in May.
Spire’s board said it agreed to the takeover over fears that its share price could have been due for a period of “volatility” and is not a fair representation of the company’s growth prospects.
The board said: “While the Spire directors remain confident in the long-term prospects of the business, the Spire directors also note the ongoing challenges of delivering the company’s standalone plan against a backdrop of macroeconomic volatility, cost pressures.
“The Spire directors consider that the prospect of a sustained and material re-rating of Spire shares in the near term is limited and, should the acquisition not proceed, that there could be a period of share price volatility.”
Takeover flurry gains pace
Spire operates 38 private hospitals and 55 clinics across the UK and delivered care to more than 1.36m patients in 2025.
The sale to Toscafund’s consortium came following a strategic review, led by advisory firm Rothschild, which saw the group hold talks with more than 60 potential buyers.
The consortium “was the only party to submit a formal proposal at a level that the Spire Board considered sufficiently attractive,” it said.
The London Stock Exchange has faced a flurry of private takeover deals in recent months, which have put significant pressure on the strength of the UK’s public markets.
Earlier this week, three FTSE members – Bodycote, Gamma Communications and Capricorn – revealed on the same day that they were considering private takeover offers, totalling more than £3bn.