American behavioural health service provider in £1.3bn takeover of Priory Group

American company Acadia Healthcare Company, Inc. has today announced that it has signed a ‘definitive agreement’ for the acquisition of the Priory Group and expects to complete the transaction by February 16, 2016.

Priory is a leading provider of behavioral healthcare services in the UK, operating more than 300 facilities with approximately 7,200 beds.

The Priory Group was created in 1980 with the purchase of the Priory Hospital in Roehampton, South West London and over the following decades acquiring more hospitals and diversifying its services. In 1993 the Priory Group moved into specialist education services with the purchase of Jacques Hall Foundation, then an adolescent therapeutic community, in Manningtree, Essex.

The companies older peoples division was established in 2009 and is now known as Amore Care. The Priory Group acquired Craegmoor in 2011 allowing a growth in the Group’s portfolios of hospital and specialist educational colleges.

Acadia will pay cash consideration of approximately £1.275 billion, including approximately £925 million used to repay outstanding debt of Priory.

Joey Jacobs, Chairman and Chief Executive Officer of Acadia, remarked: “We are extremely pleased to announce this agreement with Priory, a leading provider of behavioral healthcare services in the U.K. This transaction strongly validates our strategic decision to enter the U.K. 18 months ago and our ongoing investment in the country, which has expanded our current presence to 54 inpatient facilities with approximately 2,200 beds.

“We believe the favorable industry dynamics that support this strategy – in particular, a long-term increase in the need for independent sector support for inpatient behavioral health – will provide Acadia continuing long-term accretive organic growth and acquisition opportunities. We look forward to welcoming Priory’s outstanding team to Acadia and to building on a sector leadership position that reflects Priory’s clinical expertise, strong operations and high-quality facilities.”

Tom Riall, Chief Executive Officer of Priory, added: “Today’s announcement is great news for Priory and we are delighted to be joining Acadia’s global team. 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 behavioral healthcare services, and we are excited about the opportunities for the future.”