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LGV launches new UK hospital group

The UK mid-market firm has paid £85m to acquire nine hospitals as the basis of a new private hospital chain, Classic Hospitals, which will be the fifth largest in the UK.

Legal & General Ventures (LGV), the captive arm of UK insurer Legal & General Group, has acquired a portfolio of nine hospitals from UK private healthcare company BUPA in a deal valued at £85 million (€123 million; $148 million).
 
The nine hospitals contain more than 300 beds and are staffed by over 2,000 employees. They are located across the UK in Farnham, Reading, Halifax, Blackpool, Hull, Wakefield, Macclesfield, Hythe and Wrexham.

LGV said in a statement that the hospitals would be operated by the newly formed company Classic Hospitals, which will be the UK’s fifth largest group of private hospitals.
 
The firm said it hopes to build on services provided by BUPA and the transaction includes a commitment to invest in developing the hospitals’ facilities. Halifax Bank of Scotland (HBoS) and the Quercus Property Fund arranged financing for the deal.
 
LGV is a London-based mid-market private equity firm with an investment focus on acquiring businesses with an enterprise value of more than £60 million.
 
Its existing investments in the healthcare sector include analytical and diagnostic forensic services company LGC and Craegmoor Healthcare, which provides residential care for the disabled.
 
Last April the firm also acquired healthcare manufacturer Verna Group from private shareholders in a deal valued at £60 million