ABN AMRO is to acquire Priory Group from Doughty Hanson & Co for a total debt and equity consideration of E1.29bn. The acquisition was arranged by the structured capital markets team in ABN AMRO’s fixed income capital markets group, which was advised by the bank’s corporate finance and healthcare sector teams.
Doughty Hanson acquired Priory for £306m in June 2002, financed through an equity investment of £116m and £190m of debt.
Priory Group had a turnover of £155 million in 2004 and, since acquisition, sales have grown at a CAGR of 14%. Under Doughty Hanson’s ownership, Priory has increased its number of sites from 31 to 42 and the number of beds from 1,148 to 1,833.
Priory Group is Doughty Hanson’s second realisation in less than a week. Doughty Hanson successfully completed the initial public offering of battery manufacturer Saft, on Euronext on June 30, 2005.
Doughty Hanson has generated in excess of US$3bn (£1.7bn) in returns for investors in the last 12 months, including the sales of Priory Group, ATU and Dunlop Standard, the refinancing and IPO of Saft and the IPO and subsequent placing on Umbro.