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Acadia to Sell Celebrity Rehab Center Operator Priory

Dec 30 (Reuters) - Acadia Healthcare Company Inc said on Wednesday it would sell its UK unit the Priory Group, a care homes operator known for its celebrity clientele, to private equity firm Waterland for about 1.08 billion pounds ($1.47 billion).

The deal comes more than a year after the behavioral healthcare services provider said it was looking to sell the business, which it had acquired in January 2016 for nearly $850 million.

Priory has more than 450 facilities throughout Britain and specializes in the treatment of mental health problems, including eating disorders and alcohol and drug addictions.

Celebrities such as model Katie Price and singer Eric Clapton have sought treatment for addiction at Priory’s flagship hospital in southwest London.

Shares of Acadia rose 2.5% to $49.8 as the company said it expects proceeds of about $1.35 billion from the sale, with the amount set to be used for paying down debt.

Acadia, which has a U.S. health regulator approved therapy to treat hallucinations and delusions associated with Parkinson’s disease, said it expects the deal to close in January.

Waterland did not immediately respond to a request for comment.

$1 = 0.7357 pounds

Reporting by Dania Nadeem in Bengaluru; Editing by Aditya Soni

Source: Reuters

 


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