The Priory Group has been acquired by Acadia Healthcare, the parent company of Partnerships in Care (PiC). Acadia provides inpatient behavioural healthcare services in the US, the UK and Puerto Rico.
Acadia operates a network of 258 behavioural healthcare facilities with over 9,900 beds across its international portfolio. It provides psychiatric and chemical dependency services to patients in a variety of settings, including inpatient psychiatric hospitals, residential treatment centres, outpatient clinics and therapeutic school-based programmes. Acadia’s behavioural health treatment facilities specialise in helping children, adolescents, adults and older people who have mental health conditions and/or alcohol and drug addiction.
Acadia acquired the Priory Group for almost £1.3bn plus 5.363 million shares of Acadia common stock. Approximately £925m will go towards paying off Priory’s outstanding debt. The Group was acquired from Advent International, the private equity house which has owned it since 2011. It is expected that the deal will be completed by mid-February.
The acquisition means that Acadia now owns a significant number of the major providers in the UK market including PiC, Care UK’s former mental health services, Priory and Craegmoor.
Joey Jacobs, Chairman and Chief Executive Officer of Acadia, commented on the acquisition, ‘We are extremely pleased to announce this agreement with Priory, a leading provider of behavioural healthcare services in the UK. This transaction strongly validates our strategic decision to enter the UK 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 favourable industry dynamics that support this strategy – in particular, a long-term increase in the need for independent sector support for inpatient behavioural 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.’