HILTON HEAD ISLAND, S.C. & CHICAGO–(BUSINESS WIRE)–Hargray Communications Group, Inc. (“Hargray”) and The Pritzker Organization, L.L.C. (“TPO”) announced today that the Tom Pritzker Family Business Interests (“PFBI”) advised by TPO, along with Redwood Capital Investments, Stephens Capital Partners, and management have agreed to acquire Hargray in an all-cash transaction.
Hargray is the premier broadband communications and entertainment provider to the Lowcountry region of South Carolina and a growing set of communities throughout Georgia. Over the last ten years, the company has invested over $250 million to create an industry leading communications network that includes 2,000 route miles of fiber and serves over 65,000 customers.
Michael Gottdenker, Hargray’s Chairman & CEO, said, “We are looking forward to partnering with The Pritzker Organization, Redwood Capital Investments, and Stephens Capital Partners. This transaction will mark a new era for our organization, returning us to family ownership following ten great years with Quadrangle Capital Partners. While our current management team will continue to manage the company following the transaction, our new owners will provide a permanent capital base from which we will be able to continue to invest in our network, enhance our products and services, and pursue our mission to envision and deliver customer delight. This transaction is great news for our customers, our colleagues, and the communities we serve.”
Tom Pritzker, Chairman and CEO of The Pritzker Organization, said, “Hargray has an exceptional team and a proven track record of delivering value to its customers. We are delighted to have the opportunity to participate in and support the growth of the business over the long term. Throughout our history, we have looked for great companies and partnered with strong management teams to build durable businesses for the future.”
Credit Suisse, SunTrust Robinson Humphrey, Inc., and Antares Holdings are providing debt financing and acting as lead arrangers and bookrunning managers. Credit Suisse will serve as administrative agent. Davis Polk & Wardwell LLP served as legal advisor to Hargray, Latham & Watkins LLP served as legal advisor to TPO and the PFBI, and Cahill Gordon & Reindel LLP served as legal advisor to the lenders. McNally Capital sourced the transaction for TPO and advised the buyer, who was also advised by BDT & Company.
Terms of the transaction were not disclosed. The transaction is expected to close in the third calendar quarter.
About Hargray Communications Group, Inc.
Founded in 1949, Hargray is a regional telecommunications company providing advanced Internet, television, and telephone communications services in a growing set of markets in South Carolina and Georgia. Hargray is committed to delivering the most advanced technology and the best service for its customers in Beaufort, Jasper, and Hampton counties in South Carolina, and Bibb, Bulloch, Chatham, Greene, Houston, Liberty, Lowndes, Putnam, and Tattnall counties in Georgia. Hargray is active in the communities it serves and supports a wide range of local charities, organizations, projects and events, including the company’s Caring Coins Foundation which has raised more than $2 million for community organizations. For more information, please visit www.hargray.com.
About The Pritzker Organization, L.L.C.
The Pritzker Organization is the merchant bank for the business interests of the Tom Pritzker family. TPO is focused on partnering with exceptional leaders to create value across a wide range of industries. TPO looks for opportunities where it can create value for PFBI and its partners and stakeholders over a long-term time horizon. For more than 60 years, TPO has overseen and guided the development of dozens of portfolio companies across a wide variety of industries, including manufacturing, logistics, life sciences, hospitality, healthcare and services. Notable businesses include Hyatt Hotels, Triton Container and the Marmon Group. Recent control investments include TMS International and Lithko Contracting. In addition to its core strategy of building long-term businesses, TPO is also active in special situations, advising PFBI in the deployment of capital across a wide spectrum of industries and across every tier of the balance sheet, from senior debt to equity. Additional information can be found at www.tpo.org.
About Redwood Capital Investments
Redwood Capital Investments is the private investment company for Jim Davis, a co-founder of Allegis Group. Redwood’s primary strategy is to become long-term partners with private business owners and management teams. Redwood has a concentrated portfolio of direct investments in operating companies across diverse industries including senior living, transportation, distribution, infrastructure and real estate, and consumer services. Redwood focuses on maintaining the legacy and principles of its businesses and helping build the foundations for future growth over a long-term horizon. Select investments include Erickson Living, Tradepoint Atlantic, Premier Trailer Leasing and Thompson Gas. Additional information can be found at www.redcapinv.com.
About Stephens Capital Partners
Stephens Capital Partners LLC (“SCP”) is the principal investing arm of the Warren A. Stephens family and Stephens Inc. SCP identifies opportunities to work with industry-leading management teams with a long-term perspective. SCP provides public and private companies with capital for purposes of growth, recapitalization, and leveraged buyouts.
Stephens Inc. is a full service investment banking firm headquartered in Little Rock, Arkansas serving a broad client base of corporations, state and local governments, financial institutions, institutional and individual investors throughout the United States and overseas. The firm is a member of the New York Stock Exchange and SIPC. For more information, see www.stephens.com.
Michael Gottdenker, 843-686-1111
Joseph Gleberman, 312-873-4900