Spire Healthcare attracts Abu Dhabi interest

Spire Healthcare, one of Britain’s biggest private hospital groups, has attracted the interest of Abu Dhabi’s sovereign wealth fund during a £1.5bn sale process.

The Abu Dhabi Investment Authority (ADIA) is backing a takeover bid that is being put together by CVC Capital Partners, the London-based private equity firm.

Sky News, which first reported the emirate fund’s involvement , said that it is competing against other buyers such as KKR, Onex and rival hospital operators including HCA and Australia’s Ramsay.

A source close to the process said that the sale process was private-equity led.

Spire, which operates 37 hopsitals across the UK, has been owned by Cinven, since it acquired it from Bupa in 2007 for £1.4bn.

Cinven has hired Bank of America Merrill Lynch and Morgan Stanley to run the sale process. First round bids are expected on 7 May with an agreed sale scheduled for the end of July.

Earlier this month, the Competition and Markets Authority watered down its private hospital break-up plans that would have forced larger rival BMI Healthcare to sell seven hospitals.

BMI runs 66 hospitals across the country while HCA, which owns six of London’s 17 private hospitals was told to sell two of its hospitals.

The sale of Spire follows the flotation of Cambian, the UK’s biggest mental health services provider, last week.