Hughes completes £340m refinancing deal with Cygnet
John Hughes, the man credited with turning around The Priory in the 1980s, has completed a buyout of Cygnet Health Care for £340 million. Cygnet, which was founded by Hughes in 1987, is one of Britain’s major independent providers of psychiatric treatment.
The deal has been completed in conjunction with healthcare group,Grove Ltd. Grove, which acquired a 25% stake in Cygnet in 2004, is also the owner of Barchester Healthcare, the UK’s premier care home operator.
Cygnet operates 16 centres across the UK with more than 600 inpatient beds for private and NHS funded patients. It provides a broad mix of specialist psychiatric treatment, focusing on a personalised service to patients with psychological, emotional and addiction problems.
The company was valued at £340 million, consisting of £280 million in equity plus £60 million in debt. Cygnet’s 450 managers and staff have ownership of 11 per cent of the business, with the remainder held by John Hughes, the com