Bain Capital to enter negotiations over Priory Group

Bain Capital is close to a 1 billion pound ($1.6 billion) deal for the Priory Group, a group of more than 50 hospitals dedicated to mental health, which is most famous for treating celebrities. Bain is expected to enter into a period of negotiations with the owners of the Priory, while also arranging debt financing of up to 500 million pounds. Private equity firms such as Blackstone, Advent International and Cinven Group are reportedly also interested in the Priory.

(Reuters) – U.S. private equity firm Bain Capital is nearing a 1 billion pound ($1.6 billion) deal for mental health specialist the Priory Group, the Financial Times said on Thursday.

An agreement for Bain to enter a period of exclusive negotiations with the owners of the Priory, led by Royal Bank of Scotland, is expected to be sealed in the coming days, the newspaper said without citing sources.

The Priory operates more than 50 hospitals, schools and care homes in Britain and is best known for treating celebrities.

It is being sold as RBS sheds non-core assets to slim its unwieldy balance sheet.

The firm is expected to sign up a group of banks, which could include JPMorgan and RBS, to provide 500 million pounds of debt financing for the deal, the FT said.

Officials at the London offices of Bain and RBS were not immediately reachable for comment out of regular officer hours.

Other potential buyers for the Priory, which have included Blackstone, Advent International and Cinven Group , have not progressed to the next stages but are still involved in the process, the FT said.
(Reporting by Karolina Tagaris; Editing by Anshuman Daga)