Case Studies

In July 2005, LGV completed the acquisition of nine freehold private acute hospitals from BUPA, for an aggregate purchase price of £85m.

The fifth biggest hospital group in the UK, Classic Hospitals employs approximately 2,000 staff and has over 300 beds. The hospitals source patients from private medical insurers (69% of turnover), self pay (20%) and NHS (11%).

The group of hospitals comprises Clare Park in Farnham, Dunedin in Reading, Elland in Halifax, Fylde Coast in Blackpool, Hull and East Riding in Hull, Methley Park in Wakefield, Regency in Macclesfield, St Saviours in Hythe and Yale in Wrexham.

The hospitals were sold without any management team, head office infrastructure or brand. LGV established an infrastructure to support the hospitals and built on the services previously provided by BUPA. A new head office has been set up in Reading close to one of the hospitals and LGV has assembled an experienced management team to drive the business forward.

Classic Hospitals will continue to provide a high quality and comprehensive range of services to its customers in their local markets. The private healthcare sector has grown each year since 1980 and LGV believes there are a significant number of opportunities to expand the business in the future, supported by capital expenditure in the facilities for which funding has been committed as part of the deal.

The healthcare sector is an important sector for LGV, where investments have included Craegmoor Healthcare, the market leader in the market for provision of residential care for people with learning disabilities and physical handicaps, Verna Group, a manufacturer and distributor of consumables for hospitals and care homes and LGC, a provider of advanced analytical and diagnostic services through a chain of forensic laboratories.