Cequel Communications Holdings, LLC, which does business as Suddenlink Communications, announced today that it and its existing equity holders have reached an agreement under which BC Partners and CPP Investment Board (CPPIB) will partner with Suddenlink's management team, led by its chairman and CEO Jerry Kent, to purchase the company for $6.6 billion from Goldman Sachs Capital Partners, Oaktree Capital Management and Suddenlink's other equity holders.
Suddenlink, which was founded in 2003 from the post-bankruptcy remains of the former Classic Communications, is today the seventh-largest cable system operator in the United States. It has grown exponentially (from 325,000 customers to over 1.4 million) in recent years, having acquired systems from companies such as Alliance, Cox, Charter, Tele-Media, Shaw, Thompson and USA Media.
Suddenlink offers television, high-speed Internet and phone service to over 1.4 million residential and commercial customers, primarily in Texas, West Virginia, North Carolina, Oklahoma, Arkansas and Louisiana, as well as Tri-State communities such as Odon, Plainville and Elnora, Ind., and just south of the immediate Tri-State, the city of Russellville, Ky.
"This agreement will allow us to continue to invest in our infrastructure, new technology, and most importantly, our people," said Suddenlink's Chairman and CEO Jerry Kent. "We have 6,000 employees who are dedicated to providing a superior level of customer care, and who generate consistent, industry-leading operating results. The injection of fresh, forward-looking capital is a testament to their hard work and capabilities. We thank our lenders and original investors who believed in us and helped us build such an amazing company. We believe our new partners are a perfect match for our management team, to help us keep doing what we do best - taking better care of our customers than our competitors - and we look forward to continuing our long, successful track record of delivering superior returns."
"Suddenlink is one of the most attractive cable companies in the U.S. today, with a world-class infrastructure and a dedication to providing customers with the very best offering and service," said BC Partners co-chairman and managing partner Raymond Svider. "We are excited to be partnering with Jerry Kent and the high quality and experienced management team he has assembled.
"This represents a unique opportunity to acquire a leading cable operator that has consistently generated industry-leading results," said André Bourbonnais, senior VP for private investments at CPPIB. "We are delighted to partner with Suddenlink's management team and BC Partners to position the company for continued growth and long-term success."
The sale of the company is expected to close in the fourth quarter of this year, pending regulatory approval.
Some information for this story was provided by Suddenlink.
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