BC's Elysium acquires Badby from Patron

Greg Gille
18 April 2017

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Patron Capital has sold neuro disability care provider The Badby Group to Elysium Healthcare, a mental healthcare provider backed by BC Partners.

Patron invested in Badby in 2012 via its Patron Capital IV fund. The vendor stated that the group had grown from 68 beds to 316 beds over the five-year ownership period.

BC bought 22 mental health facilities in the UK, formerly part of Priory Group, from US corporate vendor Acadia Healthcare in November. The group was later named Elysium Healthcare.

The November deal saw 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.

The UK'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 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 later became part of Royal Bank of Scotland (RBS). RBS went on to sell the asset to Advent in 2011.

Company
Badby is a healthcare centre catering for people with acquired brain injuries, progressive neurological illnesses and complex care needs based in Daventry, Northamptonshire. The group also comprises Moorcroft Manor Neurological Care Centre and Gladstone House in Stoke-on-Trent, The Bridge in Middlesbrough, and South Park Care Centre in Darlington.

People
Patron Capital – Tim Street (senior adviser).

Advisers
Vendor – Travers Smith (legal, tax).
Company (Elysium) – Dickson Minto (legal).