Spire Healthcare has acquired Vita Health Group for £74 million

LONDON, UK: Spire Healthcare Group plc (LSE:SPI) has acquired Vita Health Group Limited, a market-leading provider of mental and physical health services in the UK, for a net cash consideration of c.£74 million.

Vita Health provides a range of NHS outpatient mental health talking therapies, musculoskeletal and dermatology services, with operational hubs in London and four regional centres in Bristol, Orpington, Oldham and Leicestershire. Vita also offers outsourced physiotherapy and counselling services to the corporate and occupational health markets. Vita’s services address two of the top causes of illness in the UK. Vita treats mild to moderate mental health conditions such as anxiety and depression.

Vita is a successful and highly regarded provider in the mental health talking therapies market, with a track record of consistently delivering market-leading performance and quality measures.

The acquisition of Vita is complementary to Spire Healthcare’s existing services and aligns well with the Group’s strategic ambitions to expand selectively in new verticals to attract customers and meet more of patients’ healthcare needs.

Vita’s experienced leadership team, which is being retained, is supported by a strong management team overseeing 1,600+ employees. The acquisition enables Spire Healthcare to expand its capabilities into low-acuity mental health while providing synergies in working with corporate and PMI customers, and occupational health businesses.

Based on current performance and recent contract wins, Vita has a run-rate and forecast which will deliver 2024 revenue in excess of £100m, Adjusted EBITDA of c.£10m, with capex of £2-3m. Following the Acquisition, the in-year contribution Vita is expected to deliver to the Group for the remainder of 2023 is revenue of c.£19m. The Acquisition consideration will be settled in cash and will be funded with £50m through the Group’s Revolving Credit Facility with the remaining funded through existing cash balances.

Justin Ash, Chief Executive of Spire Healthcare, said: “Vita addresses two of the main reasons for long-term illness and absence from work in the UK: mental health issues and back and joint pain. This acquisition complements our existing business and aligns well with our strategy of developing new services and moving into adjacent markets. The addition of Vita means that we are now able to meet people’s physical and mental health needs. Vita fits closely with the services we offer to corporate customers and gives us a good springboard for future growth. With its outstanding patient feedback, strong track record in winning contracts and proven management team, Vita is an excellent addition to our business and I look forward to welcoming our new colleagues to Spire.”

Derrick Farrell, Chief Executive of Vita, commented: “We are delighted to be joining forces with Spire. Our success over the last five years, driven by the values of putting our patients and colleagues at the centre of everything we do, has established us as a leading provider of community-based healthcare solutions and we believe that the commercial synergies, now possible as part of the Spire Healthcare Group, will allow us to stay true to our values, to extend our propositions, move into new spaces and provide more effective solutions right across the expanded Group.

“The cultural alignment across the businesses, as represented by the senior management teams, was a key factor in the transaction. Delivering effective solutions for our customers has been at the core of our success and in the Spire team we found that passion fully reflected.”

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