European cable and mobile phone operator Altice has signed a definitive agreement to acquire 70% of the share capital in Suddenlink from existing shareholders BC Partners, CPP Investment Board and Suddenlink management.
Article continues below
BC Partners and CPP Investment Board will retain a 30% stake in Suddenlink. Suddenlink is the 7th largest US cable operator with 1.5 million residential and 90,000 business customers.
With operations primarily focused in Texas, West Virginia, Louisiana, Arkansas and Arizona, Suddenlink is present in attractive growth markets for both residential and business services. In 2014, Suddenlink generated $2.3 billion in revenue and over $900 million in EBITDA with a balanced revenue mix between residential video, broadband, telephony and business services.
With a well invested, leading broadband network across its footprint, Suddenlink has a strong operational and financial growth track record. Suddenlink’s focus on service, innovation and investments provide a strong basis for extending its market leadership and growth momentum. Suddenlink represents an excellent fit for the Altice Group and will benefit from the operational expertise, scale and investment support that are at the core of the Altice business model.
With this acquisition, the Altice Group enters the large and attractive US cable market and takes a further step in diversifying and balancing its portfolio of high-quality businesses.
The acquisition by Altice values Suddenlink at an enterprise value of $9.1 billion and values Suddenlink at 7.6x synergy-adjusted EBITDA (7.3x based on a tax-adjusted enterprise value).
The transaction is to be financed with $6.7 billion of new and existing debt at Suddenlink, a $500 million vendor loan note from BC Partners and CPP Investment Board, $1.2 billion of cash from Altice with the remainder representing the roll over by BC Partners and CPP Investment Board.
Debt issuance at Suddenlink will remain ring-fenced from the existing indentures currently in place within the Altice Group, and Suddenlink will hence not be restricted under such indentures.
The transaction is expected to close in the fourth quarter of 2015 once applicable regulatory approvals have been obtained. JP Morgan, PJT Partners and BNP Paribas acted as financial advisors to Altice. Franklin, Covington, Mayer Brown and Ropes & Gray acted as legal advisors to Altice. ■
New York Governor Kathy Hochul announced that AgriAmerica Fruit Products has completed the revitalization and upgrade of a 69,000-square-foot grape juice processing facility located at 200 Water Street in the Village of Fredonia.