Classic Hospitals is the fifth largest private hospitals operator in the UK, with ten hospitals and c.370 beds. Seven of the Classic estate are in the North of England with the remaining three hospitals in the South East. The hospitals source patients from private medical insurers (c.60% of turnover), the self-pay market (c.20%) and the NHS (c.20%).
Classic Hospitals was formed following the acquisition of nine freehold / long leasehold hospitals from BUPA in July 2005. Three of the freehold hospitals were subject to a sale and leaseback at the time of the transaction. The hospitals were sold without any management team, head office infrastructure or brand.
Since the original transaction, the business, with the support of LGV, has successfully completed the transition from BUPA’s ownership to a fully stand-alone business, establishing a new head office in Reading and assembling an experienced management team to drive the business forward. LGV has also overseen substantial growth in the business, including the acquisition of a further freehold hospital – Lourdes Hospital in Liverpool – in July 2006 and a significant capital investment programme across the Classic estate.
In March 2008, LGV sold Classic Hospitals Group to Spire Healthcare (formerly BUPA Hospitals), which is controlled by funds managed by Cinven Limited, for £145 million.
