US-based Acadia Healthcare Company today announced that it had agreed to buy Priory Group.
The companies plan for the deal to consist of shares and cash, with Acadia trading £1.3bn in cash, including £925m to be used to repay outstanding debts, and 5.4m shares to acquire the UK healthcare company.
Priory, which is known for its celebrity rehab patients, currently has more than 300 facilities and the purchase will help Acadia, which provides treatment for behavioural issues and addiction problems, expand further into the country.
"We are extremely pleased to announce this agreement with Priory, a leading provider of behavioural healthcare services in the UK," said Joey Jacobs, chairman and chief executive of Acadia. "This transaction strongly validates our strategic decision to enter the UK 18 months ago and our ongoing investment in the country."
Tom Riall, chief executive of Priory, added, "Today’s announcement is great news for Priory and we are delighted to be joining Acadia’s global team. The combination of our two companies will provide the right platform to deliver long-term market leadership and sustainable growth."
The transaction is expected to complete in February this year.
Priory was understood to be in talks with banks over a possible float on the stock exchange last September.