UK private equity firm Cinven is buying Spain's USP Hospitales for 675 million euros ($920 million) to expand its private hospital portfolio after acquiring 25 in Britain less than a month ago.

USP Hospitales operates 13 hospitals and 16 outpatient centers with a strong presence in Madrid and Barcelona and a focus on six specialties including internal medicine and general surgery. It also has about 2,000 physicians under contract.

Cinven said on Tuesday it planned to expand USP with acquisitions in Spain and other international markets, as well as invest in growing existing operations including the flagship Dexeus unit which is due to open in Barcelona later in July.

Private healthcare provision and insurance is only in its early stage of development in the Iberian region which is why it provides such a strong commercial opportunity, USP chairman and chief executive Gabriel Masfurroll said.

USP, currently owned by Mercapital, expects to generate 280.7 million euros of pro forma revenue in 2007, a 14 percent gain from 2006, and earnings before interest, taxes, depreciation and amortization of 47 million, a 26 percent gain from the year before, Cinven said.

The transaction requires the approval of the competition authorities.

It is Cinven's second deal in Spain since 2000, after it took part in the 4.3 billion-euro acquisition of Amadeus Global Travel Distribution in 2005, the country's largest leveraged buyout.

Cinven also agreed in June to buy 25 hospitals from British health care provider BUPA for 1.44 billion pounds ($2.90 billion).