Cinven sells 10% stake in Spire Healthcare for £126.3m

Following the sale of around 40 million shares priced at 315 pence apiece, the GP will maintain a 48.3% stake in the business. The price gives Spire a market cap of approximately £1.26bn.

Bank of America Merrill Lynch, JP Morgan and Morgan Stanley acted as joint bookrunners for the offering, while Cinven has agreed to a 90-day lock-up period as part of the process.

Spire announced its intention to float in July last year, with a free float of 33% and an overallotment option of 15%. The business eventually priced its shares at 210 pence apiece, the bottom of its price range, giving it a market cap of £842m.

Cinven acquired Spire from Bupa in a £1.44bn deal in June 2007, beating competition from CVC, Terra Firma and BC Partners in the last round of the auction process.

As part of the sale process, Spire divested 12 of its 28 hospitals in February 2013 in a bid to reduce its debt. The deal was expected to see the company's debt reduced by £700m from £1.4bn.

Company
Headquartered in London, Spire Healthcare is a private hospital operator with a headcount of around 10,900 across 39 locations.

People
Supraj Rajagopalan, a partner on Cinven's healthcare team, worked on the deal for the GP. 

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