Bupa announced today it will sell its 25 UK hospitals to European private equity firm Cinven for £1.44bn.
The health insurance and life provider says the sale will not affect its policyholders who will have access to the same range of hospitals they do now.
Bupa chief executive Val Gooding says: “The separation of our hospitals from the insurance business will allow the two, as separate entities, to fulfil their potential and make a greater contribution to the UK healthcare economy. We are confident we will continue to enjoy a good relationship with the hospitals
group under its new ownership.”
Cinven currently owns UK mental health provider Partnership in Care. It previously invested in UK private hospital provider General Healthcare and formerly owned French hospital provider Generale de Sante.
Cinven partner Simon Rowlands says: “This is an exceptionally fine business in a sector which we believe has considerable potential. It has an enviable reputation, a good management team and a sustainable business model. The acquisition enhances our position in a market with good growth prospects.”
Bupa says it will use the sale proceeds to pay down debt and then to invest in the long term growth of the company.