Brera Scores Second With Cable Co. Buyout –

Add Brera Capital Partners to the list of private equity groups clamoring to make a play in the cable television industry.

The New York buyout group earlier this month agreed to buy a 64.4% stake in Classic Communications, an Austin, Texas-based operator of non-metropolitan cable systems, for $100 million in equity.

The capital infusion will enable Classic Communications to acquire another non-metropolitan cable company, the Tyler, Texas-based Buford Group, for approximately $300 million. The combined companies will operate cable systems throughout the Western U.S. and will become the thirteenth-largest cable operator in the country.

Bank financing and high-yield debt for the deal was led by Goldman, Sachs & Co.

Merritt Belisle will stay on as Classic Communications’ chief executive officer.

Goldman Sachs advised Classic Communications on the transaction. Brera Capital was represented by Merrill Lynch & Co.

The deal is Brera Capital’s second since closing its debut fund at $650 million last year. In March, the firm acquired Western Industries, a plastic parts company, in partnership with Graham Partners for an undisclosed amount (BUYOUTS April 19, p. 4).

The Classic Communications deal was led by Lisa Hook, a principal at Brera Capital in charge of media and telecommunications investing. Ms. Hook comes from an operating background in the cable industry-she served as chief operating officer for Time Warner Inc.’s telecommunications division, and before that, as legal council to Viacom’s cable group, which was subsequently sold to TCI International.

Alberto Cribiore, Brera Capital’s founding partner, also has experience in the media industry, having spent three years at Warner Communications, now Time Warner, before joining Clayton, Dubilier & Rice as a co-president in 1985. Mr. Cribiore founded Brera Capital in 1997.

The spokesperson said Brera Capital will look to make add-ons to Classic Communications, and may draw down additional capital from the buyout fund to do so.