Spire Healthcare buyer squares Circle as £1bn takeover looms

Wednesday, 2 September 2026 18:53

By Mark Kleinman, City editor

The investment firm which is on the verge of buying Britain's biggest private hospitals group is planning to install a seasoned industry executive as its new boss.

Sky News has learnt that Toscafund Asset Management, which has been in talks about a £1bn takeover of Spire Healthcare for several months, intends to parachute Paolo Pieri - formerly of Circle Health - into the company as its executive chairman.

Mr Pieri helped turn Circle Health into one of the UK's biggest private healthcare providers in partnership with Toscafund, its then owner.

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As Spire's executive chairman - assuming the deal with Toscafund goes through - Mr Pieri will oversee a company comprising 38 hospitals and more than 60 clinics across the country.

Last year, it treated close to 1.4 million inpatients, outpatients, day case patients and workplace health clients.

It is the biggest provider by volume of hip and knee operations in Britain.

Spire is currently run by veteran boss Justin Ash, who previously ran the dentistry chain Oasis.

Sir Ian Cheshire, Spire's chairman, recently announced that he would step down from the role regardless of the takeover going through.

Spire's board has already said it would recommend Toscafund's 250p-a-share offer for the company, with discussions around financing arrangements having prompted a series of deadline extensions from the Takeover Panel.

One banking source said the two sides were working towards finalising a deal ahead of a deadline on Thursday, but cautioned that there remained an outside chance that a further extension of as little as 24 hours might be required.

The financing for the deal is understood to be being provided by a syndicate comprising Song Capital, Ares Management and Three Hills Capital Partners, according to City insiders.

Song Capital, which previously helped finance deals involving Circle and Nuffield, another healthcare group, is said to have committed roughly £500m to the Spire takeover in long-term property financing secured against the majority of Spire's freehold hospitals.

A Spire spokesman declined to comment.

Neither Toscafund nor Song Capital could be reached for comment, while Ares has been contacted for comment.

Sky News

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