Cheadle Royal sold to Priory in Affinity deal
AFFINITY Healthcare, based in Cheshire, has been bought by the Priory Group for an undisclosed sum.
The Affinity group includes the Cheadle Royal Hospital and the Middleton St George Hospital in Darlington, operating around 250 beds.
It works with more than 80 NHS trusts and Priory said the deal, which is subject to clearance by the Office of Fair Trading, means it can extend its growing work with the NHS.
It added that the move will mean commissioners and patients will benefit from a greater capacity and range of integrated services through one provider.
Philip Scott, chief executive of Priory, said: “It makes commercial sense to combine our portfolios to ensure that all of our stakeholders benefit from the value that a larger hospital group will undoubtedly deliver.
“Affinity is a high-quality business and will fit well into the hospital division operated at Priory.”
Tommy MacDonald-Milner, Affinity chief executive, said the deal meant a greater range of integrated, high-quality services will be offered to all patients.
He added: “Affinity is achieving strong profit growth at a time when other firms have had a hard time because of the recession and is an established provider of high-quality complex mental health services to the NHS.
“Affinity’s business is a good fit with the Priory which is the UK’s largest independent provider of mental health and specialist education services.”
Affinity also has plans to open an adolescent mental health unit in Ballyclare, Northern Ireland.
Private equity firm Duke Street acquired Affinity Healthcare in 2004 for £69m and in the year to the end of June 2009 the company had turnover of £42.1m and EBITDA of £8.5m.
Its Cheadle Royal Hospital provides facilities for eating disorders, adolescent mental health, rehabilitation, a psychiatric intensive care unit and care for low security patients. The hospital has 153 beds and employs more than 500 people. Middleton St George Hospital has around 80 beds.
The Manchester office of law firm Pinsent Masons advised Duke Street on the deal.
