Circle Health to acquire BMI Healthcare

09 January 2020

Circle Health, the independent hospital group, and BMI Healthcare, the UK’s leading independent hospital operator, today announced that Circle Health has agreed to acquire BMI Healthcare from Hospital Topco Limited (“HTL”), in a deal that will deliver a new generation of best-in-class hospitals.

BMI Healthcare manages a network of hospitals and clinics throughout the UK, with over two million patient visits per year. Circle operates independent hospitals in the UK and China, and also offers innovative rehabilitation and integrated care services.

Circle’s existing independent hospitals combine award-winning architecture and patient experience with cutting-edge medical equipment. Circle has committed to a multi-million pound programme of investment in estates, technology and people as part of the acquisition.

In a separate transaction, Medical Properties Trust Inc. (“MPT”), the global leader in hospital real estate, has announced that it will acquire from affiliates of HTL the real estate interests of 30 hospitals leased and managed by BMI Healthcare. MPT already owns one hospital that is leased and managed by BMI Healthcare and two hospitals leased and managed by Circle Health. These transactions follow the acquisition and recapitalisation of BMI Healthcare by HTL, announced in December 2018, and the earlier acquisition of a portfolio of BMI Healthcare’s hospital properties by HTL.

The 2018 recapitalisation was sponsored by a consortium of existing shareholders and creditors of HTL and its subsidiaries led by Centerbridge Partners L.P., a private investment management firm. The recapitalisation delivered a significant rent reduction and enabled the commencement of a four-year £250 million capital investment programme, which will continue under Circle Health.

Commenting on the agreement, Paolo Pieri, CEO of Circle Health said:

“BMI Healthcare is well-known for its highly-skilled staff and clinicians, and together we believe we can set new standards on quality in our sector. We plan to invest in cutting-edge technology and the latest medical treatments to help us transform care in our hospitals.”

Peter Sullivan, Chairman of Circle Health, said:

“This is an exciting step forward for Circle Health in our mission to deliver the highest standards of patient care, and I pay tribute to the strong management team who have made this game-changing deal possible.”Dr Karen Prins, CEO of BMI Healthcare said:

“Circle Health and MPT both truly understand the UK healthcare market, and we are looking forward to the opportunities that this acquisition brings. This partnership will build on the steps we have taken to secure the long-term future of the business and will support our aspirations to provide ever higher standards of care for our patients.”

David Mobbs, Non-Executive Chairman of HTL, added:

“This is an important milestone in the development of BMI Healthcare, and will provide the financial and strategic support to develop the business over the coming years and to make progress in achieving our long-term objectives of excellence in clinical quality, patient safety and efficiency.”

As part of its ordinary course investigation and in accordance with its usual practice, the Competition and Markets Authority (“CMA”) has imposed an Initial Enforcement Order which requires Circle Health and BMI to continue operating as independent businesses until the CMA has concluded its investigation.

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