German healthcare firm eyes bid for rehab specialist Priory Group
A German healthcare firm backed by US private equity giant Carlyle is entering the race to snap up rehab clinic owner Priory Group for roughly £1.2bn.
City A.M. understands that Schoen Klinik, which employs almost 11,000 people, is among a pack of bidders vying to take over the Priory chain from its American owner Acadia Healthcare.
Some prospective buyers are planning to table offers for the company today, sources told Sky News, which first reported the move.
Acadia bought the Priory Group for £1.3bn in 2016 from private equity firm Advent International, but appointed a financial adviser in April last year to explore a possible sale.
Sign up to City A.M.’s Midday Update newsletter, delivered to your inbox every lunchtime
The company operates over 450 private and NHS facilities treating people with addiction and mental health problems. Its clinic in Roehampton is famous for treating celebrities including Kate Moss, Robbie Williams and Paul Gascgoine.
But the Priory Group has been hit by a number of scandals over the quality of care at its institutions. Last year it was given a £300,000 fine over the death of a 14-year-old girl who was found hanged while in the care of a Priory hospital near Tunbridge Wells in 2012.
An undercover investigation carried out by ITV also exposed a litany of failings at the hospital group, including numerous suicide attempts and a teenager who spent weeks wearing only a blanket.
Schoen Klinik, which operates an orthopaedic and spinal hospital in central London, is understood to be lining up its bid with financial support from Carlyle.
Australian hospital group Ramsay Health Care, Canadian investment fund Brookfield and buyout firm Capvest are reportedly among the other bidders for Priory Group.
Priory Group and Carlyle declined to comment.
Main image credit: Getty