Healthcare business, The Priory Group, has acquired two care homes in a deal that could pressage a takeover of the company.
Doughty Hanson, the private equity house that is expected to put the Priory Group up for sale later this year for £500m, has paid £50m for Aspen House and Beech House, which provide long-term residential care for patients with brain injuries and mental illness.
The deal, to be announced tomorrow, strengthens the Priory Group’s presence in the market. Partnerships in Care, the UK’s biggest chain of mental healthcare hospitals is up for sale for about £800m.
Barchester, the mental healthcare provider is expected to make a bid for the Priory if it comes on the market.
References: The Sunday Times, Business, 06/03/05, page 2
