Tennessee’s Acadia to divest UK-based celebrity rehab centre Priory for $1.47 billion

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Tennessee’s Acadia to divest UK-based celebrity rehab centre Priory for $1.47 billion

Acadia Healthcare Co Inc., the Tennessee-based American multinational behavioural healthcare provider operating a chain of 584 facilities across the US, UK and Puerto Rico, had issued a statement on Wednesday saying that the company had been mulling an option to sell off its UK unit, Priority Group, a rehabilitation centre known for its celebrity clientele, to an Irish private equity fund Waterland for a stark upsum of £1.08 billion ($1.47 billion).

In point of fact, latest move from Acadia Healthcare to divest its UK arm came forth more than a year after the American healthcare service provider having had over 40,000 employees to-date had said that it was looking to a divestiture of the business.

Notably, Acadia Healthcare had purchased the UK-based Priority Group, widely known for its portfolio of high-profile celebrities such as model Katie Price and singer Eric Clapton who sought treatment for addiction at the company’s flagship hospital in Southwest London, for an approximated $850 million back in the January of 2016.

Priority has over 450 treating facilities across UK and primarily focused on treatment of a swathe of mental health problems ranging from eating disorder to alcohol and drug abuse.

Acadia set to divest UK unit, shares soar

In actuality, recent move from Acadia to a $1.47 billion sell-off of Priority, would provide the American behavioural healthcare provider with an enhanced financial flexibility to finance its future expansion strategies in the United States, industry analysts said.

Besides, Acadia’s US business, accountable for roughly 65 per cent of the group’s entire revenue, had reported a 7.6 per cent upsurge in revenues over the third quarter of the year that ended on September 30.

Meanwhile, following the Acadia announcement, Waterland said in a separate statement that it was expecting to close the deal as early as by next month, while the Dublin-based private equity fund had been working out an option to merge Priority with its German rehab unit Media upon completion of the deal.

On top of that, Nasdaq-listed shares’ prices of Acadia climbed as much as 3.58 per cent to wrap up the day at $50.30 apiece followed by the announcement.