finance

Priory rehab clinics sold to private equity firm for £1.1bn


The Priory rehabilitation clinic, favoured by celebrities trying to achieve sobriety or tranquillity, has been sold to a private equity firm for £1.08bn to create one of the world’s largest private mental health services providers.

The famous Roehampton clinic in south London, which has treated celebrities including Katie Price, Kate Moss, Amy Winehouse, Paul Gascoigne and Eric Clapton, has been bought by the Dutch firm Waterland.

The deal also includes more than 450 smaller facilities owned by the Priory Group throughout the UK that specialise in the treatment of mental health problems, eating disorders and alcohol and drug addictions.

Waterland, which was recently named the best performing private equity firm in Europe, said it would combine the Priory Group with Median, Germany’s largest provider of rehabilitation and neurology treatments, to create “Europe’s leading rehabilitation and mental health services providers”. The combined group will be able to treat 260,000 patients across 570 clinics.

Waterland is buying the Priory Group from the US’s Acadia Healthcare, which it bought for $850m in 2016.

Shares in Acadia rose 2.5% to $49.80 after the company said it expected proceeds of about $1.35bn from the sale, with the amount to be used for paying down debt.

Dr Carsten Rahlfs, the managing partner of Waterland, said: “Priory Group and Median have strong reputations in clinical excellence and in delivering high-quality patient care. I believe that bringing together both organisations will build a powerful platform to deliver world-class healthcare services across Europe, encompassing rehabilitation and mental health treatments.”

Dr André Schmidt, the Median chief executive, said: “We are delighted to be partnering with a company and team as prestigious as Priory Group. They have a strong reputation for delivering innovation and quality care for patients in the UK.

“Demand for the services that both companies provide is set to increase as populations age, as the pressures of modern life grow, and as public healthcare systems come under fiscal pressure. Together, we stand ready to meet those needs and I am tremendously excited about the opportunities for the future.”



READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.  Learn more