(Sharecast News) - Private healthcare provider Spire Healthcare said on Thursday that it has bought Vita Health Group, a provider of mental and physical health services in the UK, for around £74m in cash.
Vita 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.
Spire said that 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 earnings before interest, tax, depreciation and amortisation of around £10m, and capex of £2m to £3m.
Chief executive Justin Ash 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."
Spire Healthcare (SPI)