Irish tycoons eye celebrity rehab centre

A PRIVATE nursing home group owned by John Magnier and JP McManus is eyeing up a takeover of The Priory, the London clinic best known for treating celebrities with drug habits.

Barchester Healthcare which is owned by Irish racing magnates John Magnier and JP McManus, billionaire financier Dermot Desmond and former Kerry Group chairman and chief executive Denis Brosnan is interested in buying The Priory when it comes up for sale later this year.

The Priory is part of a chain of psychiatric clinics across Britain, but its London hospital has become famous for treating stars with drug and alcohol problems and depression.

In recent years the likes of Ronnie Wood, the Rolling Stones rocker, supermodel Kate Moss, singer Pete Doherty and Brian McFadden's ex-wife Kerry have checked in to the Priory, where a stay in the exclusive facility in Roehampton costs around €3,500 a week.

The company is owned by investment bank Doughty Hanson and, according to some estimates, it could sell for €725 million. Aside from the London clinic, Priory Healthcare owns 15 psychiatric hospitals, seven teaching schools and a number of smaller treatment centres.

It employs 2,000 medical and care staff.

Barchester Healthcare has raised €250m from its shareholders to purchase a number of private hospitals in Britain. Its chief executive Mike Parsons said: "I think it [The Priory] will be up for sale this year and, yes, we will look at it very closely. We have shareholders with huge appetite for healthcare."

According to The Priory's most recent financial results, it has annual sales of €110m and profits of €21m.

Barchester is the third largest owner of nursing homes in Britain. It has around 100 homes and has doubled in size in the past six months following its takeover of Westminster Healthcare for €730m in November.

A takeover of The Priory would signal a change in focus from nursing homes to pure healthcare.

It is believed that Barchester's owners are planning a €1bn flotation on the London stock market in the next three years.

Mr Magnier and Mr McManus are the largest shareholders in Barchester, owning just over 50% of the company. Mr Brosnan acts as Barchester's chairman and also has a stake.

Barchester is just one of the Coolmore Mafia's British investments.

Mr McManus and Mr Magnier are the largest shareholders in Manchester United and along with former tennis star Billy Jean King own a string of fitness clubs.