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Spire Healthcare Group plc announced on 19 December 2022 the acquisition of The Doctors Clinic Group Limited for a total consideration of £12 million. The Doctors Clinic Group operates 22 private GP clinics, serves over 700 corporate clients, and has a workforce of 279 (65% clinicians). The acquired company is expected to deliver turnover of £11 million in 2022.
| Date | 19 Dec 2022 |
| Time | 07:00:06 |
| Category | Acquisitions and alliances |
| ID | 0739K |
Spire Healthcare Group plc
('Spire Healthcare', 'Spire', 'the Company' or 'the Group')
Acquisition of The Doctors Clinic Group Limited
19 December 2022
Spire Healthcare Group plc (LSE: SPI), a leading UK independent hospital group, is pleased to announce the acquisition of The Doctors Clinic Group, an integrated provider of occupational health and private GP services, for a total consideration of £12m.
The Doctors Clinic Group provides occupational health services to more than 700 corporate clients and operates 22 active private GP clinics. It is expected to deliver turnover of £11m in 2022 and currently has a total workforce of 279, of which 65% are clinicians.
The acquisition of The Doctors Clinic Group furthers Spire Healthcare's strategy to expand its proposition to address the increased demand for healthcare in the UK, supporting the delivery of a broader range of healthcare services which complement the existing services offered by the Group's hospitals. This is a modest bolt-on investment in a business that, under Spire's ownership, is expected to break even in 2023 and become profitable in 2024.
Occupational health is an attractive market in the UK with demand growing by 7% per year over the last five years, as employers seek to provide better support and benefits for their employees. The Doctors Clinic Group's occupational health business provides a range of services including absence management, new starter and back-to-work assessments, and health surveillance. The Doctors Clinic Group's services to corporates also extend to corporate wellness services such as screening, vaccinations and workshops. Spire sees synergy potential between its core hospital services and insurance products for The Doctors Clinic Group's corporate clients, and anticipates an opportunity to add further scale to the occupational health business in the future.
The private GP business is aligned with the significant growth in demand for face-to-face GP services in the UK and Spire Healthcare's plans to develop a network of clinics. Under Spire's ownership, patients can expect to benefit from a more convenient referral pathway to Spire's clinics and hospitals for further diagnosis and treatment if required. The Doctors Clinic Group's private GP footprint is particularly strong in Central London, which represents an opportunity for Spire to gain a primary care presence in this market.
Justin Ash, Chief Executive Officer of Spire Healthcare, said:
"The Doctors Clinic Group will provide Spire with a strong platform to enter and expand in the fast-growing occupational health sector, and to increase our capacity to meet the burgeoning need for private GP services. This acquisition is closely aligned to our growth strategy and I look forward to welcoming all colleagues at The Doctors Clinic Group to Spire Healthcare."
- Ends -
For further information please contact:
Angus Prentice - Interim Head of Investor Relations
Damian Reece
Guy Scarborough
Registered Office and Head Office:
Spire Healthcare Group plc
3 Dorset Rise
London
EC4Y 8EN
Registered number 09084066
About Spire Healthcare
Spire Healthcare is a leading independent hospital group in the United Kingdom, with 39 private hospitals and eight clinics across England, Wales and Scotland.
Working in partnership with around 8,150 experienced Consultants, Spire Healthcare delivered tailored, personalised care to almost 870,000 in-patients and daycase patients in 2021, and is the leading private provider, by volume, of knee and hip operations in the United Kingdom.
The Group's well-located and scalable hospitals have delivered successful and award-winning clinical outcomes, positioning the Group well with patients, Consultants, the NHS, GPs and Private Medical Insurance ('PMI') providers. 98% of Spire Healthcare's inspected hospitals and clinics are rated 'Good' or 'Outstanding' by the Care Quality Commission ('CQC') or the equivalent in Scotland and Wales.
Spire Healthcare treats patients through a variety of routes including PMI, self-pay and the NHS, providing the Group with diversified access to the expected growth opportunities in the UK healthcare market, which faces significant supply challenges as a result of NHS budget constraints and increasing demand from a growing population with longer life expectancy.