Assura accepts takeover by KKR and Stonepeak

Bringing to an end a bidding war between the American vehicle and rival Primary Health Properties, the deal values the Altrincham-based healthcare investor at £1.6bn.

An announcement was issued to the Stock Market this morning, stating that the directors of Assura and Sana Bidco, a new vehicle set up by private equity giant Kohlberg Kravis Roberts and Stonepeak Partners, had agreed terms on a takeover.

The terms of that deal are for the entire issued share capital of Assura, priced at 48.56 pence per share.

Acceptance of the deal brings to a close a bidding war that saw Assura’s rival medical landlord PHP submit a renewed bid last week for the business, which like an earlier approach was rejected.

KKR’s team had also made earlier approaches, leading to an indicative offer at £1.6bn in mid-March.

Offering an overview of the transaction, KKR and Stonepeak said that they believe that Assura has a crucial and growing role to play in the provision of critical healthcare infrastructure in the UK and Ireland over the long term.

Further, the partners believe that Assura has a highly attractive portfolio of assets and a management team with significant industry knowledge and experience, which meet the objectives of both organisations; respective infrastructure investment strategies.

KKR and Stonepeak “recognise that Assura has a capital-intensive strategy and believe that private ownership can better access this significant opportunity by allowing Assura to make sustained capital investments without the need for asset sales”.

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KKR and Stonepeak said that they intend to support the Assura management team and its strategy of asset development, enhancement and acquisition in healthcare infrastructure, as well as its sustainability and social objectives. KKR’s and Stonepeak added that their extensive access to long term capital and their global network and expertise will enable the Assura team to accelerate its investment strategy and grow Assura’s asset base under private ownership.

Assura has been advised by Lazard. Founded and listed on the London Stock Exchange in 2003 as the Medical Property Investment Fund before being renamed, it is now a FTSE 250 business with interests in more than 600 healthcare assets, across GP surgeries, private healthcare and NHS trusts.

Ed Smith, Non-Executive Chair of Assura, said: “The board of Assura is focused on delivering maximum value for Assura shareholders. The cash offer from KKR and Stonepeak allows Assura Shareholders to realise their investment at an attractive price.

“At the same time, I am confident that the company will continue to flourish under the ownership of KKR and Stonepeak. With the benefit of the additional capital that KKR and Stonepeak can provide, Assura will be able to continue to support the NHS and other healthcare providers in delivering improved health outcomes.”

Tara Davies, partner, co-head of EMEA and co-head of European Infrastructure at KKR, said: “Assura is a market leader in healthcare infrastructure and we share the company’s objective of building best-in-class facilities to support the delivery of national healthcare objectives.

“Delivering this effectively requires significant investment in Assura’s platform, a long-term perspective and the ability to fund Assura’s growth through long-term and flexible capital. Together, KKR and Stonepeak bring deep pockets and understanding of UK infrastructure and real estate, and a shared track record of accelerating growth and investment.”