Southeast Telecom Fund Scores First Acquisition –

Tennessee Valley Ventures, L.P., a buyout fund that targets companies in the Southeast, in May completed its first acquisition with the $8 million purchase of Multi-Link, a telecommunications equipment manufacturer. The fund, which saw a final closing of $10.5 million at the end of last year, was formed by business leaders, many of whom hail a telecommunications background.

Tennessee Valley Ventures paid $100.2 million in equity for the Lexington, Ky-based Multi-Link. Financing was provided by NationsBank. The company, which was started in 1987, makes telephone products and specializes in devices that automatically screen and route all voice, data and fax calls to the appropriate equipment. “Multi-Link has significant upside potential, national marketing appeal and an established management team that will be staying,” said Andrew Byrd, president and chief manager of Andrew W. Byrd, L.L.C., which manages the fund.

Multi-Link president and minority stockholder Wayne Mulberry said there has been a considerable amount of interest from other buyers in past years, but he was not interested in selling Multi-Link until recently. His decision to sell the company now is based on personal issues such as health problems and reducing personal debt, he said. Tennessee Valley Ventures ultimately was chosen because it was the most respectable group with the best business acumen, according to Mr. Mulberry.

Andrew W. Byrd, L.L.C., located in Nashville, Tenn., was founded by Mr. Byrd in January 1995. Mr. Byrd said he has been in the buyout business with other companies since 1985. Tennessee Valley Ventures, the six-person firm’s first fund, targeted high net worth individuals and institutions as investors from mid 1997 to December of last year.

Mr. Byrd said Tennessee Valley Ventures looks to close on two more acquisitions, one per quarter, in the next two quarters.