Spire takeover talks collapse

Takeover talks between Spire Healthcare and private equity firms Bridgepoint and Triton Partners have collapsed sending the FTSE 250-listed healthcare provider’s shares plummeting by 20% on Monday.

Spire’s share price rallied last week after it was reported that Bridgepoint was preparing a 230p-per-share offer for the group. However, in a statement issued on Friday, the private equity firm said it did not intend to make an offer and had been ‘unable to get sufficient confidence as to a transaction structure that would work for all stakeholders at this time’.

Spire later confirmed that conversations with each of Bridgepoint and Triton had terminated. It said it remains in discussions with other parties in relation to a potential sale while continuing to ‘actively evaluate other appropriate actions to drive long-term, sustainable shareholder value’.

Despite significant expansion and diversification into adjacent areas such as occupational and mental health services, Spire’s share price has continued to lag, prompting leading shareholders to push for a sale. Last year, the Financial Times reported that major investors, including hedge fund Toscafund and Harwood Capital, along with its activist trust Achilles, were urging Spire to pursue a sale at a minimum price of 340p per share.

Spire appointed Rothschild to conduct a strategic review of the business in September, saying that it continued to be undervalued by the market.

However, since then increasing use of Activity Management Plans (AMPs) by NHS commissioners have impacted FY25 EBITDA, and Spire has warned of ‘material uncertainty’ in its NHS markets continuing into 2026.

Spire reported adjusted EBITDA of £268.6m on revenue of £1,578m for FY25. The group said its diversification, focus on higher-acuity NHS activity and cost control measures meant it was well placed to manage the impact of reduced NHS commissioning, but it does not expect a return to NHS revenue growth this year.

Under its NHS planning assumptions, it is targeting FY26 EBITDA broadly in line with 2025, supported by further efficiency savings and accelerated growth in private revenue.