Spire Healthcare buys majority stake in Sheffield hospital for £15.7m

Independent hospital group Spire Healthcare said it had bought an 87% stake in the operating assets of the Claremont Private Hospital in Sheffield for £15.7m in cash from Aspen Healthcare.

Spire added it had agreed a long-term lease with Aspen Healthcare's owner, NorthWest Healthcare Properties REIT, on market based terms.

The hospital has 46 beds and three operating theatres, and specialises in orthopaedics, general surgery and neurosurgery. In 2019 the hospital generated £20.3m of revenue, with proforma core earnings of £2.7m.

Spire said the facility gives it "a high quality hospital in South Yorkshire, an area with a large population where (it) currently has no presence, and where the group anticipates strong demand for self-pay procedures".

A group of consultants, most of whom have practising privileges at the hospital, will hold a stake in the hospital.

"The acquisition is expected to be accretive to Group EBITDA and earnings in the first full year, with further opportunities for operating synergies in the medium term through the adoption of Spire Healthcare's systems, procurement network and practices," the company said on Thursday.