Craegmoor Group acquired by healthcare rival Priory

WORCESTER based specialist healthcare group Craegmoor has been acquired by the Priory Group in an undisclosed deal.

As a result of the acquisition, Priory will become the market leader in the mental healthcare, specialist education, autism and learning disability sectors.   

The acquisition is the first by Priory since it was acquired by private equity firm Advent International from The Royal Bank of Scotland earlier this year in a deal valuing the group at £925m.

Craegmoor is the country’s leading independent provider of support for people with learning disabilities, autism, complex needs and mental health problems as well as older people.

Priory, as current market leader in acute mental health services and specialist education services, will consolidate these divisions via Craegmoor’s hospital and specialist educational colleges portfolios.

The acquisition will also see Priory create a new autism and learning disability services division.

Elderly care operations will be strengthened with the creation of a larger division with a strong development pipeline. Priory said this would place it strongly to meet the needs of an aging population, which is anticipated to grow during the next 20 years.

With NHS healthcare reforms rapidly progress, Priory expects to capitalise on its enlarged status to become a partner of choice for many of the new commissioning entities expected to be established over the coming years.

Philip Scott, Priory Group chief executive, said: “Priory and Craegmoor are extremely complementary businesses.  Our combined strengths will enable us to offer our patients, pupils and their families, access to a wider range of specialists, whilst also improving the continuity and co-ordination of care we are able to offer.  

“Our management team is committed to ensuring that high quality service provision remains the top priority for the new group.”

Ted Smith, chief executive of Craegmoor Group, said, “It is a testament to the fantastic strides Craegmoor has made in the past few years that we have attracted the attentions of the leading business and brand in our sector.
 
“Our staff, the people we support and their families should be confident that the business is in safe hands and well positioned to form an important part of a larger group.”
 
Advent International also holds a majority investment in Craegmoor Group.