The UK occupational health market is experiencing a notable transformation, driven by increasing demand for employee health and wellbeing services. As organisations prioritise workforce safety and productivity, with a sharper focus on a preventative and proactive approach, the need for comprehensive occupational health solutions has surged, providing an attractive landscape for investment.
Valued at approximately £1.1 billion, the market has experienced a steady annual growth rate of around 7% over the past five years. Despite this growth, access to occupational health services remains limited, with only 45% of workers in Great Britain currently receiving this benefit. This gap highlights a significant opportunity for expansion as organisations and investors recognise the need to enhance employee health support.
The two key drivers of employee absence, MSK and mental health, remain a core focus of occupational health services, combined with increased use of technology and digital platforms to make services more accessible and efficient.
The strong growth drivers of the market have resulted in significant private equity interest. Notably, NorthEdge's recent investment in Latus, a leading provider of employee health services, underscores the growing confidence in the sector. This deal follows previous investments for BGF (Medigold), LDC (PAM Group) and Apposite (HCML).
For these platforms, a combination of organic growth, strategic acquisitions and effective deployment of technology will be key. We have already seen a number of corporates use M&A to strengthen their market position and diversify service offerings.
A key example includes the recent merger of Medigold and Health Management, creating one of the largest independent providers of workplace health in the UK and expanding Medigold's reach to serve 4.5 million employees. PAM Group’s acquisitions of MedProtect and Corporate Health Ireland, along with Latus’ purchases of ELAS Occupational Health and Industrial Diagnostics Company, further demonstrate this trend.
Large corporates operating in the wider sector are also looking to capitalise upon the market opportunity, with Spire and Marlowe undertaking strategic acquisitions such as The Doctors Clinic Group and Optima Health.
With a solid foundation and promising future, the UK occupational health market is poised for continued expansion, making it an area to watch in terms of M&A and private equity activity.
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