BC Partners buys 22 Priory Group clinics from Arcadia

The GP's new portfolio will be the foundation of a new company, led by former Partnerships in Care CEO Joy Chamberlain.

The deal sees BC acquire the portfolio as part of a regulatory compliance measure by Acadia, following its acquisition of Priory's 322 units in January for £1.3bn from Advent International. According to media reports, Advent itself was among the bidders for the 22 clinics put up for sale by Acadia.

Britain's Competition and Markets Authority had voiced concerns over lack of competition in the market earlier this year, suggesting Acadia could avoid an in-depth competition review if the group took action to mitigate the regulator's concerns.

Before Advent's sale to Acadia, the Priory group had been under private equity ownership for two decades. HgCapital was the first private equity investor in the group, completing the £88m BIMBO of Priory – then known as Londinium, a subsidiary of US group Community Psychiatric Centers – through its Fifth Grosvenor Fund. The deal was later syndicated to the GPs that are now CCMP Capital Advisors, Montagu Private Equity, Silverfleet Capital and UPM.

The syndicate exited its holding to Westminster Health Care in 2000, which in turn sold it to Doughty Hanson two years later in a £371m deal. In July 2005, Doughty Hanson sold Priory to ABN Amro, which would later become part of Royal Bank of Scotland (RBS). RBS went on to sell the asset to Advent in 2011.

Company
Founded through the carve-out from Acadia, the yet-to-be-named business will operate 22 mental health facilities in the UK, employing 2,000 employees and managing 1,000 beds.

People
BC Partners – Matthew Tooth (senior partner).

Advisers
Equity – PJT Partners (corporate finance); KPMG (financial due diligence); Candesic (commercial due diligence).
Management – Travers Smith (legal).

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• Topics
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• Travers Smith