Assura agrees to £1.6 billion takeover by KKR and Stonepeak Partners
- Assura Group has agreed to a £1.6 billion takeover by KKR and Stonepeak Partners.
- A cash offer of 49.4p per share was chosen over a merger proposal from Primary Health Properties.
- The takeover raises concerns about the implications of private equity firms in the UK healthcare system.
In the United Kingdom, Assura Group has entered into an agreement for a takeover by American private equity firms KKR and Stonepeak Partners, valued at £1.6 billion. This decision was confirmed on a Wednesday after the company's board thoroughly considered various proposals over the preceding weeks. Assura's board recommended to its shareholders that they support a cash offer of 49.4p per share, offered by KKR and Stonepeak, in a move that aims to provide immediate financial benefits to its investors. Prior to this, Assura was considering a merger proposal by Primary Health Properties, another significant NHS landlord listed on the London Stock Exchange. However, the board rejected this offer on the grounds that it did not meet sufficient value criteria, considering the last-minute nature of PHP's proposal which valued each share at approximately 45.4p. Their analysis led them to believe that the deal with KKR and Stonepeak presents a more advantageous opportunity in terms of immediate cash value. This takeover underscores a broader trend in the UK healthcare sector, where increasing numbers of NHS facilities are being acquired by private equity firms, particularly from the United States. The involvement of US private equity in UK healthcare raises questions about the future of public health services and the driving motivations behind such acquisitions. The long-term implications for patient care and the operational structures of NHS properties are under scrutiny as more facilities transition into private ownership. The deal's confirmation welcomes a significant change in the ownership landscape of UK healthcare, promising immediate liquidity for Assura's shareholders while sparking debate regarding the role of private equity in the public health sector. Ultimately, this acquisition by KKR and Stonepeak illustrates the growing intersection of private investment and public services, posing important questions about healthcare delivery in the UK as the nation navigates through ongoing challenges in the health sector.