RBS sells Priory rehab clinics in £925m deal

ROYAL Bank of Scotland has agreed to sell its rehab clinic and care specialist Priory Group, famous for treating a long list of celebrities, for £925 million.

The private equity buyer, Advent International, is expected to complete the takeover by the end of March.

Part-nationalised RBS has been disposing of non-core assets as it struggles to recover from its near collapse during the credit crisis. The bank acquired the healthcare group when it bought ABN Amro in 2007.

RBS - 83 per cent owned by the taxpayer - said that, after payment of debts, it expects to pocket up to 133m.

Priory Group owns the 90-bed clinic in Roehampton, Surrey, which is renowned for helping celebrities to overcome addictions and psychological issues, including Rolling Stone Ronnie Wood, supermodel Kate Moss and singers Susan Boyle and Amy Winehouse.

The firm operates 66 hospitals, schools and care homes throughout the UK.

The long-speculated sale is thought to have been delayed by concerns over the impact of government spending cuts on the group, which generates more than 75 per cent of its income from the public sector.