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Priory wins Birmingham City Council contract

Mental health giant Priory Group has won a 10-year contract from Birmingham City Council to run five residential children’s homes.

Due to start in April this year, the deal is expected to be worth around £20 million in revenue over the next five years and up to £40 million for the full term of the contract.

Priory will operate 30 beds across five children’s homes.

NASDAQ-listed Acadia Healthcare acquired Piory from Advent International earlier this week for £1.3 billion and 5.363 million shares of Acadia common stock.

Acadia is also the owner of mental health provider Partnerships in Care.

Priory is best known for providing treatments for addictions and conditions including depression and anxiety. The firm says it treats more than 20,000 patients a year at sites across the UK.

Tom Riall, chief executive at Priory, said:

“Priory is unique in offering the largest network of mental health and specialist education services for young people in need of expert care and support across the UK.

This new contract will allow us to better support young people in Birmingham, building on our existing partnership with local hospitals, to transform the lives of young people across the city.”