Freshfields Bruckhaus Deringer and Stephenson Harwood have led on the sale of the Priory, the rehab clinic known for its celebrity clients, having treated the likes of supermodel Kate Moss, pop star Robbie Williams and rocker Pete Doherty.
US private equity group Advent International sold the Priory to Acadia Healthcare for £1.3bn, after buying it in 2011 for £925m. Priory’s management was advised on the 2011 transaction by DLA Piper.
The Priory, which has a hospital in Roehampton, London, operates more than 300 facilities with approximately 7,200 beds. The group is expected to produce around $865m in revenue in 2015 with profit of approximately $196m.
Freshfields advised Advent International, with rising private equity star Adrian Maguire leading on the deal alongside corporate partner Julian Pritchard.
The Magic Circle firm has previously advised Advent International on its 2012 acquisition of Cytec Industries Inc for $1.15bn, and its sale of Domestic & General to CVC back in 2013.
Stephenson Harwood’s head of corporate Andrew Edge led for Acadia, with support from corporate partner Andrew McLean, corporate finance partner Karima Hudson, real estate partner Simon Brading and employment partner Anne Pritam. Nashville-headquartered law firm Waller Lansden Dortch & Davis acted for Acadia in relation to its financing of the transaction.
Acadia will pay cash consideration of approximately £1.3bn, including approximately £925m used to repay Priory’s outstanding debt.
Brent Turner, Acadia’s president, told Legal Business: ‘We’ve been in the UK for a year and a half and the Priory acquisition gives us expanded scale and service lines across the mental health spectrum in the UK. We’re very excited to help the Priory continue to grow. Given the continuing increase in demand for behavioural services, the market is expanding.’