Priory sold to US group for £1.28bn

THE Priory rehab clinic has been sold to a US mental healthcare chain.

Best known for its celebrity clients, the group of treatment centres and schools was sold by British private equity firm Advent for £1.28bn.

Its American buyer Acadia specialises in psychiatric and chemical addiction services and the deal will see it expand its network of 258 behavioural clinics.

Priory Group, which counts Kate Moss and Amy Winehouse among former patients, runs 300 facilities with 7,200 beds and charges more than £650 per night for private clients.

It offers treatments for conditions related to mental health, eating disorders, senior care, and addictions, i ncluding sex addiction, internet addiction and shopping addiction.

The Priory’s flagship clinic in Roehampton, South West London, is popular among high profile patients and has treated George Best, Paul Gascoigne and Robbie Williams.

Advent bought the group from RBS in 2011 for £925m, after the bank had failed to float it on the stock exchange. RBS had inherited the group in a takeover of Dutch bank ABN Amro in 2007. Under Acadia’s takeover 5.36m shares will be issued to the current owners of the Priory Group.

Joey Jacobs, chief executive of Acadia, said it was part of the group’s strategy to expand into the UK due to the need for private sector support for its services.

Tom Riall, chief executive of Priory, said: ‘The combination of our two companies will provide the right platform to deliver long-term market leadership and sustainable growth.

‘We are creating a genuine world leader in the provision of behavioural healthcare services, and we are excited about the opportunities for the future.’