Global private equity firm Advent International has agreed to acquire The Priory Group, the UK’s leading independent provider of mental health and specialist care services, from The Royal Bank of Scotland Group plc (RBS) for an enterprise value of up to GBP925 million. The transaction is subject to regulatory approval.
The Priory Group operates from 66 sites and delivers services through 3,355 beds across the country. The group works in partnership with the NHS and local authorities to provide a range of treatment and care facilities including secure and acute services in the mental health sector and neuro-rehabilitation therapy. It also offers specialist education for young people with challenging learning difficulties and behavioural problems as well as complex care services for the elderly, with a particular focus on dementia.
The Priory Group was established in 1980 with the purchase of the Priory Hospital. Subsequently, the group expanded through the acquisition of additional hospitals and diversification of its care services. It was acquired by RBS in 2007 and has since achieved significant growth. The Priory Group is one of the leading operators in the mental healthcare sector and offers the highest levels of complex care in a cost effective package. In particular, the group has developed market leading methodologies for tracking outcomes in order to demonstrate the effectiveness of treatments in improving the lives of patients.
Underlying demand for quality health and social care is expected to continue to rise, driven and supported by a number of factors including a growing and ageing population requiring more complex care, lowering social stigmas associated with mental health issues and improved diagnosis of needs that may previously have gone undetected as well as a raised level of expectation in the effectiveness and safety of services patients receive. In addition, The Group is well placed to deliver value for money and outcomes to more healthcare and education commissioners as the basis for private sector supply to the public sector is defined over the coming year.
Advent will work with the existing management team to support the continued operational improvements being made across The Group, as well as identifying opportunities for consolidation that emerge in the sector driven by a strong combination of social trends and economic and regulatory reform. The Advent team was led by Thomas Allen and Rory Pope.
“The Priory Group is a leader in delivering sustainable outcomes for the people receiving its treatments and services," says Thomas Allen, director ADvent International. "Much of this is thanks to the fantastic team of employees and consultants who are continuously innovating and delivering personalised programmes in order to maximise quality of life for individuals and their families.
"We are backing a proven and seasoned management team led by Philip Scott who has played an integral role in driving the recent success of the business. As new investors, we are committed to maintaining the quality of care that has become synonymous with The Priory Group and look forward to working with Philip and his team to maximize the opportunities that exist in the UK healthcare market.”
