Mediclinic Purchase Stake in Spire Healthcare Group

Private hospital group Mediclinic International (Stellenbosch, South Africa) has signed an agreement to purchase a 29.9% share of Spire Healthcare Group (Cinven, United Kingdom) for USD 675 million.

The purchase will be made via an intermediary, Mediclinic's major shareholder Remgro (Stellenbosch, South Africa). In order to facilitate the transaction, Remgro will acquire the shares through a wholly-owned subsidiary, Remgro Jersey. As soon as Mediclinic has secured the requisite funding, it will acquire 100% of the interests in Remgro Jersey. Remgro, a 41.3% shareholder in Mediclinic, has agreed to underwrite the proposed rights issue, which is expected to complete by the end of August 2015.

Spire Healthcare Group operates 39 hospitals, 13 clinics, and one radiotherapy cancer center across England, Wales, and Scotland. It offers medical services in a range of areas, including orthopedics, gynecology, cardiology, neurology, oncology, and general surgery, as well as diagnostic services such as imaging and pathology. In addition, it provides out-patient services, comprised of consulting services, minor medical procedures and treatments, health checkups, and physiotherapy.

Mediclinic International, founded in 1983, is one of the top 10 listed private healthcare groups in the world. It operates 49 acute care private hospitals in South Africa and three in Namibia, with a total of 7,885 beds. In Switzerland, under the name Hirslanden, it operates 16 acute care private hospitals with 1,655 beds and three primary care outpatient clinics. The company also operates two hospitals and eight clinics in Dubai (UAE), as well as two clinics in Abu Dhabi (UAE), with a total of 382 beds.

“We are delighted to have identified the opportunity to acquire a meaningful holding in Spire, led by a strong and highly experienced management team, and can now realize it with the facilitation of Remgro,” said Danie Meintjes, CEO of Mediclinic. “We are investing in a growing developed market while also diversifying into an attractive new geography with a strong currency. Both Mediclinic and Spire will benefit from collaboration through the sharing of knowledge and experience and improving cost synergies and efficiencies.”

“This is an exceptional opportunity for us to gain a strategic investor who understands our business and growth ambitions as we develop our asset base to meet the significant capacity growth we expect for the UK private healthcare sector in the medium to long-term,” said Robert Roger, CEO of Spire Healthcare Group. “We look forward to working with them to explore ways our two businesses can cooperate to serve both our patients and our shareholders even more effectively.”

Related Links:
Mediclinic International
Spire Healthcare Group
Remgro