ABN AMRO outbids rivals for Priory |
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Published
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Wed, 06 Jul 2005 10:35
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Priory Healthcare, the UK's biggest chain of private psychiatric hospitals has been sold to Dutch bank ABN AMRO in a deal that was valued at $1.5 billion (£875 million).
Priory also happens to be best known as the place where celebrities land to kick off their addictions. Doughty Hanson the private equity firm that had brought Priory three years ago decided to shed its acquisition and had asked the Rothschild investment bank to act as the arbitrator of the sale. The Priory chain has got 15 psychiatric hospitals and runs seven schools.
The group also takes care of five brain injury and rehabilitation units and two therapeutic community assessment services. Some of the best-known clients of the chain include singer Pete Doherty, footballer Paul Gascoigne, The Rolling Stones' Ron Wood and model Kate Moss.
On its part, ABN AMRO has announced that it plans to sell some shares in Priory, but will be the largest shareholder. ABN AMRO had outbid BC Partners, Cinven, Charterhouse and Electra besides the American hedge fund, Fortress Investment Group. Commenting on the acquisition, Mike Nawas, global head of the fixed-income capital markets unit at ABN AMRO said, "The added value we bring to Priory is that we are not just a financial sponsor but a partner that can also help with financing and advice on expansion and takeovers instead of them going to an investment bank."
Priory chief executive Chai Patel was ecstatic on winning the support of Europe's leading bank and said that the group had the potential to act as a consolidator within its sector, "This deal brings us a partner who not only shares our vision, but is able to back it with significant financing and advisory expertise over the long term," he commented.
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