Spire Healthcare has entered early discussions with private equity firms including Bridgepoint and Triton, as the UK’s largest private hospital operator explores options that could result in a full sale, the Guardian reports.

The FTSE 250-listed group said the talks are at an early stage and that there is no certainty any offer will be made. Shares rose 18% following the announcement, valuing Spire at close to £850m, or roughly $1.1bn.

Spire operates 38 hospitals and more than 50 clinics, medical centres, and consulting rooms across England, Wales, and Scotland. The company floated in 2014 after being formed from the acquisition and rebranding of Bupa hospitals.

The potential transaction follows a strategic review launched in September, after pressure from investors led by Harwood Capital Management. Harwood said in a Times report that Spire’s share price failed “to reflect the company’s value, most notably its unencumbered hospital portfolio worth in excess of £1.4bn.”

Spire said annual adjusted core profit is expected to come in at the bottom end of its £270m to £285m guidance range. NHS-related work accounts for about 30% of revenue, but the company warned of “material uncertainty” around future NHS volumes amid budget constraints.

A sale would mark one of the most significant private equity transactions in UK healthcare this year, as buyout firms target defensive assets with hard real estate backing.

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