Hargray Communications (“Hargray” or the “Firm”) and The Pritzker Group, L.L.C. (“TPO”) introduced right now that an investor group led by TPO and together with Stephens Capital Companions, Redwood Capital Investments, and WaveDivision Capital has signed a definitive settlement below which Cable One, Inc. (“Cable One”), presently a minority investor in Hargray, will buy the remaining pursuits in Hargray. TPO led the Hargray funding in 2017 and has held a majority stake within the Firm and invested in its progress since that point.
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Based within the Lowcountry area of South Carolina, Hargray is the premier broadband communications supplier to small cities and huge cities all through South Carolina, Georgia, Alabama, and northern Florida. The Firm has invested considerably to assemble fiber-optic broadband networks and to accumulate and improve smaller suppliers to create a high-growth broadband communications firm that serves 125,000 clients.
Michael Gottdenker, Hargray Chairman and CEO, stated, “TPO’s growth-oriented strategic pondering and long-term perspective have confirmed invaluable during the last 4 years. From the time we first met, it was clear that their dedication to partnership and collaboration prolonged nicely past their capital funding. Their insights and views have been vital in serving to us understand Hargray’s potential. We weren’t seeking to promote, however one in all our strategic companions introduced us with a lovely alternative. We labored with TPO to refine our views, and so they and our different traders supported this transaction. I’m extraordinarily grateful for the large and unwavering assist from TPO in addition to Stephens Capital Companions, Redwood Capital Investments, and WaveDivision Capital. Since final 12 months when Cable One contributed its Anniston, Alabama system in alternate for a minority curiosity in Hargray, it has change into much more obvious that each firms have decidedly complementary mindsets, cultures, and core values, which I’m assured will allow our colleagues, clients, and communities to proceed to thrive with Cable One as our sole proprietor.”
Joe Gleberman, Managing Director of TPO, stated, “We’re pleased with our partnership with Michael and his crew, which has enabled Hargray to advance its objective of empowering individuals and communities to attach and thrive. The hallmarks of that partnership embrace a deep mutual respect between the TPO and Hargray groups and alignment round a transparent and profitable plan to put money into and develop Hargray for the long run. In each manner, this has been a real partnership amongst administration, our co-investors and TPO, and we’re excited to look at Hargray proceed to develop as a part of Cable One. As we have now carried out for a few years, we proceed to search for founders and leaders of personal firms like Michael who’re searching for affected person long-term capital to develop their companies.”
“Our acquisition of Hargray displays a continuation of our dedication to supply rural America with dependable high-speed web service,” stated Julie Laulis, President and CEO of Cable One. “It has been a pleasure to work with Hargray’s investor group led by TPO. Hargray’s regional focus, native values, and ongoing funding in technological developments and buyer care are strikingly like our personal. We’re excited to welcome our new Hargray colleagues as we work collectively to realize future progress and proceed to construct upon Hargray’s dedication to buyer delight.”
Because the starting of TPO’s funding in 2017, Hargray has accelerated a multi-pronged funding technique to boost its community and product choices to be the very best high quality broadband supplier in every of its markets. In consequence, over the previous 4 years Hargray has practically doubled its buyer base, together with delivering enhanced broadband service to underserved markets, and achieved a number of different vital milestones:
Strategic separation into two distinct enterprise models, one centered on Hargray’s incumbent markets and one on Hargray’s overbuild markets, to drive elevated focus and decentralization
Continued growth inside its present footprint and entry into two new states (Alabama and Florida) via a mix of eight acquisitions and ongoing natural progress funding
Over $300 million in community funding to increase into new markets, present practically ubiquitous gigabit service throughout its footprint, and ship substantial product upgrades
Prospects will proceed to obtain their current providers, however over time can count on Cable One to deliver much more superior providers to residents and companies in Hargray’s communities. Cable One’s objective is to supply communities the connectivity that enriches their world, and like Hargray focuses on small cities and huge cities led by regionally based mostly market groups deeply rooted within the communities they serve.
The transaction is anticipated to shut within the second quarter of 2021.
About Hargray Communications Group, Inc.
Based in 1947, Hargray is a regional telecommunications firm offering superior Web, tv, and phone communications providers in a rising set of markets in South Carolina, Georgia, Alabama and Florida. Hargray is dedicated to delivering probably the most superior know-how and the most effective service for its clients and is lively within the communities it serves. It helps a variety of native charities, organizations, tasks and occasions, together with via the corporate’s Caring Cash Basis which raises cash from buyer payments for group organizations. For extra info, please go to www.hargray.com.
About The Pritzker Group, L.L.C.
The Pritzker Group is the service provider financial institution for the enterprise pursuits of the Tom Pritzker household. TPO is targeted on partnering with distinctive leaders to create worth throughout a variety of industries. TPO seems to be for alternatives the place it could actually create worth for our household’s pursuits and our companions and colleagues over a big time horizon. For greater than 60 years, TPO has overseen and guided the event of dozens of portfolio firms throughout all kinds of industries, together with manufacturing, logistics, life sciences, hospitality, healthcare and providers. Notable companies embrace Hyatt Resorts, Triton Container and the Marmon Group. Latest management investments embrace TMS Worldwide, Lithko Contracting, KBP Investments, Mammoth Holdings and STV Inc. Along with its core technique of constructing companies over the long run, TPO can be lively in particular conditions, advising the household’s pursuits within the deployment of capital throughout a large spectrum of industries and throughout each tier of the steadiness sheet, from senior debt to fairness. Further info could be discovered at www.pritzkerorg.com.
About Stephens Capital Companions
Stephens Capital Companions LLC (“SCP”) is the principal investing arm of the Warren A. Stephens household and Stephens Inc. SCP identifies alternatives to work with industry-leading administration groups with a long-term perspective. SCP supplies private and non-private firms with capital for functions of progress, recapitalization, and leveraged buyouts. Stephens Inc. is a full-service funding banking agency headquartered in Little Rock, Arkansas serving a broad shopper base of firms, state and native governments, monetary establishments, institutional and particular person traders all through the US and abroad. The agency is a member of the New York Inventory Alternate and SIPC. For extra info, see www.stephens.com.
About Redwood Capital
Redwood Capital Investments is the holding firm for Jim Davis, a co-founder of Allegis Group. Redwood operates as a long-term associate for personal enterprise house owners and administration groups. Redwood has a concentrated portfolio of direct investments in working firms throughout a various vary of industries together with distribution, automotive retail, gear leasing and actual property. Redwood focuses on sustaining the legacy and rules of its companies and serving to construct the foundations for future progress over a long-term horizon.
About WaveDivision Capital
Based in 2003 by broadband entrepreneur Steve Weed, WaveDivision Capital (“WDC”), headquartered in Kirkland, WA, is a non-public funding agency centered on the broadband . Steve was founder and CEO of Wave Broadband, and the managing administrators of WDC, Harold Zeitz and Wayne Schattenkerk, had been previously the President and CFO, respectively, of Wave Broadband, which grew to one of many largest broadband firms on the West coast, till its multi-billion-dollar sale in 2018. WDC’s objective is to deliver higher web connections to extra houses and companies all through North America. You possibly can be taught extra about WDC at www.wavedc.com.
About Cable One
Cable One, Inc. (NYSE: CABO) is a number one broadband communications supplier serving greater than 950,000 residential and enterprise clients in 21 states via its Sparklight® and Clearwave® manufacturers. Sparklight supplies customers with a wide selection of connectivity and leisure providers, together with high-speed web and superior Wi-Fi options, cable tv and cellphone service. Sparklight Enterprise and Clearwave present scalable and cost-effective merchandise for companies ranging in measurement from small to mid-market, along with enterprise, wholesale and provider clients.
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