RBS to sell celebrity rehab clinic the Priory

ROYAL Bank of Scotland has begun the sale of the Priory Group, the rehab clinic best-known for treating celebrities, in a deal the bank hopes could raise about £1 billion, sources said yesterday.

• Celebrities such as Amy Winehouse have raised the profile of the Priory Picture: Getty Images

RBS, which is being advised by Rothschild investment bank, is understood to have given bidders until mid-September to submit indicative offers. Private equity groups are thought to be frontrunners to take over Priory, whose proposed flotation was abandoned by the Scottish bank earlier this year.

Sources said that those interested include Advent International, Bain Capital, Blackstone Group, the Carlyle Group, Cinven and KKR.

RBS declined to comment. A Priory spokesman also declined to comment, saying the group was "focused on the day-to-day running of the business".

The private equity firms either refused to elaborate or were not available for comment. Royal Bank recently sold 300-plus branches to Santander of Spain for 1.65bn as part of its radical restructuring.