KKR and Stonepeak acquire Assura in £1.7bn deal, with Travers Smith and Simpson Thacher advising
Travers Smith and Simpson Thacher & Bartlett are steering a £1.7bn takeover of NHS landlord Assura by a US private equity consortium comprising KKR and Stonepeak.
FTSE 250-listed Assura confirmed on Wednesday (11 June) that it had reached a binding agreement with the consortium on a “best and final” cash offer. The company controls a £3.1bn property portfolio, which includes GP surgeries, primary care centres and community hospitals across the UK and Ireland.
Travers Smith is representing Assura in the transaction, with head of transactions Aaron Stocks and M&A partner Ben Lowen leading the advisory team. Travers has a longstanding relationship with Assura, having previously advised on its £185m equity raise in 2020 to develop NHS healthcare buildings, and a £300m equity raise in 2017, both led by Stocks alongside US securities partner Dan McNamee.
On the buyer’s side, Simpson Thacher & Bartlett is acting for KKR and Stonepeak. The US firm’s team is headed by Amy Mahon, co-head of its energy and infrastructure practice, and M&A partner Clare Gaskell. This deal marks yet another major European mandate for Simpson Thacher, following its advice to Stonepeak on last December’s €1.5bn acquisition of Italian aerospace manufacturer Forgital from Carlyle.
KKR and Stonepeak had previously agreed on a £1.6bn offer for Assura. However, last month, Assura confirmed it was also reviewing a competing cash and share proposal from its listed rival, Primary Health Properties, which was advised by CMS.
Embed from Getty ImagesAfter months of negotiations, KKR managing director Andrew Furze stated: “After nearly a year of engagement, this is our best and final offer, which we believe is lower risk than other alternatives and higher in value, offering a significant premium.”
The deal also involved cross-border legal elements. Bowmans acted for KKR and Stonepeak on South African law aspects, as Assura has held a secondary listing on the Johannesburg Stock Exchange since November. The listing was intended to provide Assura with an additional pool of capital for future expansion.
Nikolaus Woloszczuk, senior managing director at Stonepeak, emphasised the growth potential the deal offers. “Our offer equips Assura with the long-term capital it has not been able to access as a listed business and will enable the company to invest in upgrading critical healthcare infrastructure, delivering improved outcomes for the NHS. Our offer is about growth, not about cost-cutting and disposals,” he said.
The takeover represents yet another example of international buyers capitalising on the UK’s valuation gap to acquire British assets. KKR, in particular, has remained highly active in the UK market. In 2019, it turned to Simpson Thacher for its acquisition of a majority stake in broadband provider Hyperoptic. In 2022, it relied on Gibson Dunn & Crutcher for its investment in Northumbrian Water.
KKR was also previously lined up to acquire a £4bn stake in embattled utility firm Thames Water. However, earlier this month, it emerged that KKR had withdrawn from that deal amid Thames Water’s ongoing financial and regulatory troubles.
The Assura transaction underscores the continued interest of US private equity firms in British infrastructure and healthcare assets, particularly as political and economic uncertainty continues to depress valuations in the London market.
