Cygnet completes £340 million transaction
17 April 2008
LG’s healthcare team has advised Cygnet 2008 Limited on its acquisition of the entire issued share capital of Cygnet 2002 Limited for £340 million.
This transaction was completed to facilitate the return of cash to Cygnet group employees who hold a majority stake in the business. Cygnet 2002 Limited is the holding company of Cygnet Health Care Limited (“Cygnet”), a national provider of psychiatric and elderly health care facilities.
Cygnet operates 16 centres nationwide and includes 12 clinics focussed on providing care for acutely ill psychiatric patients suffering from a broad range of psychological and emotional disorders. The acquisition was financed as to £280 million by the issue of shares in Cygnet 2008 Limited and as to £60 million by way of a negotiated debt facility with a consortium of banks.
The LG team advising Cygnet was led by corporate finance partner Tim Casben and included corporate associate David Reith. Corporate tax and employee share option advice was provided by corporate tax partner Mike Murphy and associate Angela Booth.
Commenting on the deal Tim said: “We are very pleased to be involved in another successful transaction for the Cygnet group. We have acted for the group since 1998 when they bought out the Company at a £34 million valuation. Cygnet’s commitment to employee share ownership, which has resulted in them having over 300 members of staff and their families owning an interest in the Company, has contributed to the significant growth achieved by the group in recent years.”
Cygnet was advised by Berwin Leighton Paisner LLP on the debt arrangements.
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Tim Casben
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