The board of Spire Healthcare has agreed to sell the hospital and clinic operator to a trio of investment funds for more than £1bn.
The consortium is led by Toscafund and comprises Three Hills and Ares.
The 250p a share cash bid is a 66.2% premium to the closing 150.4p price back in May when the offer was first tabled.
The new owner has been quick to make changes with chief executive Justin Ash stepping down, with non-executive David Sloman, who has led several NHS Trusts, becoming interim CEO.
Ash said this is the right time to step away with the business entering a new phase with strong foundations.
The intention is for the rest of the executive leadership team to remain in their roles following the completion of the deal.
Toscafund was the second largest shareholder with an 18% stake when it made the initial bid to take the FSE250 member private after Bridgepoint Advisers and Triton Investment Advisers decided against making an offer.
The group was sold following a strategic review in the face of rising costs.
The deal ends a four-month process where the deadline to make a firm offer was postponed four times as the consortium worked to complete the due diligence, finalise the documents and arrange funding.
The best available outcome
Spire’s chairwoman-designate Debbie White said the directors are confident in the long-term prospects of the business.
“Spire has made significant progress in executing its strategy to strengthen care quality, diversify revenue streams and drive efficiencies across the UK’s largest independent integrated healthcare network.”
But she added that while the long-term prospects for independent healthcare in the UK are strong, cost pressures from rising national insurance and the minimum wage have been material.
“Having conducted a comprehensive strategic review, the board is satisfied that the acquisition represents the best available outcome for Spire shareholders.
“The cash offer of 250 pence per share was higher than all other formal proposals received during this process and provides certain value in cash today for Spire shareholders.”
Toscafund chief executive Martin Hughes said: “Our offer reflects our confidence in the care Spire’s hospitals provide, the people who deliver it and an ambition to achieve even more.
“Toscafund has a track record of backing successful healthcare businesses to grow and improve.
“As a private company, Spire would have the freedom to plan for the long term and the agility to move faster: investing in its hospitals and people, putting the latest technology to work and setting new standards in patient care.”
Spire operates 38 hospitals and more than 55 clinics across England, Wales and Scotland, which collectively served more than 1.3 million people last year.