UK private hospital operator Spire Healthcare has agreed to a recommended cash acquisition by Tulip UK Bidco, a newly formed investment vehicle, in a transaction that values Spire's equity at approximately £1.03bn and its enterprise value at around £2.31bn.

The offer values London-based Spire at £2.50 per share, representing a 66.2% premium to its closing share price on 13 May, before the approach became public.

Spire’s board unanimously recommended the offer following an eight-month strategic review during which its advisers held discussions with more than 60 potential buyers. The consortium was the only party to submit a formal proposal at a level the board considered sufficiently attractive, with earlier offers rejected as undervaluing the business. The transaction gives Spire an enterprise value of approximately £2.31bn, including debt and other obligations.

The deal is one of the largest UK healthcare transactions of 2026. If completed, Spire Healthcare, a private healthcare provider that operates 38 hospitals and more than 55 clinics across the country, would be taken private and delisted from the London Stock Exchange (LSE), adding to the long list of companies that have been acquired and taken private in recent years.

Tulip is backed by funds managed or advised by Toscafund Asset Management, Three Hills (THCP Advisory) and Ares Management. The consortium said Spire’s hospital network, freehold property assets and long-term growth prospects were not fully reflected in its public valuation.

Management changes will see CEO Justin Ash retire, with Sir David Sloman becoming interim CEO. Sir Ian Cheshire will step down as chair, with Debbie White becoming interim chair.

White, said: "Having conducted a comprehensive strategic review, the board is satisfied that the acquisition represents the best available outcome for Spire shareholders. As an experienced healthcare investor and the company's second largest shareholder, Toscafund has deep knowledge and experience of the business and its operations, and Toscafund has assured the board of Spire that it is committed to providing the highest standards of care to patients.

"The long-term prospects for independent healthcare in the UK are strong, but the trajectory has demonstrated much volatility in recent years and the ongoing cost pressures have been material, including from increases in national insurance contributions and the national minimum wage."

Martin Hughes, CEO of Toscafund, added: "As Spire's second-largest shareholder, we know the business well and believe strongly in its future."

The deal is expected to be implemented through a Court-sanctioned scheme of arrangement and remains subject to shareholder, court and regulatory approvals.

Spire's shares rose more than 3% in early trading to around £2.45, following a much larger market reaction in May, when shares spiked by around 43%-47% after Toscafund disclosed its £2.50 proposal.

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