Royal Bank of Scotland sells Priory rehab clinics
State-rescued Royal Bank of Scotland on Tuesday said it had agreed to sell Priory Group, whose clinics regularly treat celebrities with addictions, to private equity group Advent International.
The bank said the sale was worth £925 million (1.11 billion euros, $1.48 billion) but that it expected to make only around £133 million because of the Priory's high debts.
"The Royal Bank of Scotland Group plc announces today it has reached agreement for the sale of the Priory Group to Advent International for an enterprise value of up to £925 million," RBS said in a statement.
RBS inherited Priory Group when it bought Dutch bank ABN Amro in 2007. The deal for ABN at the top of the market, coupled with the financial crisis, crippled RBS, resulting in a huge bail-out by the British government.
RBS is currently 83-percent owned by the state.
The Priory Group meanwhile runs addiction clinics and care homes throughout Britain.
© 2011 AFP