Sponsor-to-Sponsor Briefs –

ABN AMRO has agreed to acquire Priory Group from Doughty Hanson & Co. for approximately E1.29 billion (inclusive of leverage). Priory Group is a U.K.-based independent provider of mental healthcare and specialist education services, with 1,700 beds spread over a network of 40 facilities. It was acquired by Doughty Hanson in 2002 for GBP306 million (including GBP116 million of equity).

ABN AMRO Capital has acquired Dutch holiday parks operator Roompot from Bencis Capital Partners for an undisclosed amount. Company management will retain a minority shareholding position. Bencis had originally acquired Roompot in March 2003.

AIG Highstar Capital, a private equity unit of American International Group Inc., has agreed to sell the Southern Star natural gas pipeline system to General Electric Co. and Caisse de depot et placement du Quebec for $362 million. The deal also would include the assumption of approximately $476 million in debt and preferred stock, with GE holding a 60% ownership stake and Caisse holding the remaining 40 percent. AIG Highstar acquired Southern Star in 2002 from The Williams Cos., and GE’s Energy Financial Services acquired 2% of the company’s equity of in 2003.

Allied Capital Corp. has acquired Norwesco Inc. from Norwest Equity Partners and Brockway Moran & Partners for $160 million. Norwesco is a St. Bonifacius, Minn.based manufacturer of plastic agricultural and septic tanks, and became a portfolio company of Norwest and Brockway Moran in October 1998.

Barclays Private Equity has agreed to sell France-based mayonnaise and olive oil company Benedicta to AXA Private Equity and company management. No pricing terms were disclosed for the deal, which will include financing arranged by Fortis Banque France and Capazanine. Barclays originally acquired Benedicta from Unilever in a E42 million MBO.

Eurazeo has entered exclusive talks to acquire European budget hotel chain B&B Hotel from Duke Street Capital and other shareholders. No financial terms have been disclosed.

Heritage Partners has completed its sale of The Butler Co., a Dublin, Ohio-based provider of animal health products to veterinarians, to Oak Hill Capital Partners. Subsequent to the sale, Butler Co. merged with fellow animal health products company Burns Veterinary Supply Inc., which is owned by The Darby Group of Cos. Oak Hill and Darby now hold equal stakes in the combined company, renamed Butler Animal Health Supply LLC.

Compiled by Dan Primack