Corporate finance advisers from the Birmingham office of Ernst & Young played a key role in the £85 million combined institutional buyout and management buy-in of nine hospitals from healthcare group BUPA.
The private hospitals, now known as Classic Hospitals, are based in different parts of the country, with a spread from Hull in the North to Hythe in Kent and including Reading's Dunedin Hospital where the business has its headquarters.
The buyer is private equity group Legal and General Ventures, which, after being selected as the prospective buyer, identified the senior management team that was then advised throughout the transaction by Ernst & Young.
Classic Hospitals is headed by chief executive Adrian Stevensen, who, along with his colleagues, has become a shareholder in the new business. The new management team also includes chairman Frank Hollendoner, who was formerly chairman of Independent Care, a hospital owner and developer.
Finance director Robin Best, who was formerly involved in the successful buyout of Oxoid Limited, and Simon Harrison, divisional director at BUPA Hospitals, has also transferred to Classic Hospitals as director of operations.
As a result of the deal Classic Hotels has become the UK's fifth largest operator of private hospitals with 2,200 staff and 300 beds.
Birmingham-based Stuart Crebo, the director heading Ernst & Young's advisory team on the deal, said: " Classic Hospitals have a track record of providing healthcare in an effective and efficient way and have an excellent management team, with extensive experience of the private hospital sector.
"They now have an excellent platform for their future strategies thanks to the strength of the sector and the reputation of their hospitals and to the financial backing of Legal and General Ventures."