ABRY Partners IV, L.P and Oak Hill Capital Partners have sold all of the shares of Atlantic Broadband Group, a cable system operator, to Cogeco Cables. The transaction is valued at $1,360 million or 8.3x 2013E EBITDA. Cogeco is a Canada-based cable system operator.
ABRY Partners IV, L.P and Oak Hill Capital Partners have sold all of the shares of Atlantic Broadband Group, LLC, a cable system operator, to Cogeco Cables, Inc. The transaction is valued at $1,360 million or 8.3x 2013E EBITDA.
Both ABRY Partners and Oak Hill are private equity firms. Cogeco is a Canada-based cable system operator. Atlantic, ABRY Partners and Oak Hill are based in the US.
Announcement (July 18, 2012):
ABRY Partners IV and Oak Hill have entered into a definitive agreement to sell all of the shares of Atlantic Broadband to Cogeco Cables. The transaction is valued at $1,360 million or 8.3x 2013E EBITDA.
Cogeco Cable will finance the transaction through a combination of cash on hand, a draw-down on its existing revolving term facility of approximately $550 million and $660 million of borrowings under committed non-recourse debt financing at Atlantic Broadband. The pro-forma consolidated debt to EBITDA level of Cogeco Cable will be 3.1x at closing.
Gleacher and Company Securities Inc. is acting as financial advisor, while Stikeman Elliott S.E.N.C.R.L., s.r.l, Simpson Thacher & Bartlett LLP and Wiley Rein LLP are acting as legal advisors for Cogeco Cables. Bank of America Merrill Lynch is serving as sole lead arranger and providing the committed debt financing at Atlantic Broadband. Kirkland & Ellis LLP is acting as legal advisor to ABRY Partners.
The transaction expected to close before the end of the 2012.
Deal Value (US$ Million) 1360
Deal Type Private Equity
Deal Status Completed: 2012-11-30
Target (Company) Atlantic Broadband Group, LLC
Acquirer (Company) Cogeco Cables, Inc.
The acquisition will allow Cogeco Cable to enter into the US market, increasing the penetration of the small and mid-sized business segment, and maximizing the bundling potential of services in the residential sector.
It will also allow Cogeco Cable to serve more than 2.45 million primary service units (PSUs) in Canada and in the US.
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