Cable Technology Feature Article
Suddenlink to Acquire NPG Cable for $350 million
By Rahul Arora, TMCnet Contributor
Cequel Communications, which does business as Suddenlink Communications, has signed a definitive agreement to acquire NPG Cable, Inc., and its subsidiaries from News-Press & Gazette Co. The deal is worth approximately $350 million, subject to customary working-capital closing adjustments. With the deal, Suddenlink expects to close the acquisition in the first quarter of 2011, and currently has sufficient existing liquidity sources to fund the transaction.
NPG Cable, Inc., manufactures cable systems that serve approximately 83,000 customers, representing approximately 210,000 revenue generating units or RGUs, with operations in St. Joseph, Mo.; Mammoth Lakes, Calif.; and several, clustered Arizona communities, including Flagstaff and Sedona, Lake Havasu and Kingman.
"We're excited about the opportunity to acquire NPG and welcome its employees and customers to the Suddenlink family," said Jerry Kent, Suddenlink's chairman and chief executive officer, in a recent press release. "This acquisition is a solid fit with our existing operations and we have a proven track record of serving similar communities. We have great respect for NPG and its owners, the Bradley family, and look forward to working with them on the transition."
Suddenlink, which is the seventh largest cable operator in the United States, supporting the information, communication and entertainment demands of approximately 1.3 million residential customers and thousands of commercial customers, has operations in Maryville, Mo., and Bishop, Calif., which are proximate to NPG's cable systems in St. Joseph and Mammoth Lakes, respectively. According to officials from Suddenlink, the company plans to interconnect those properties after the acquisition closes.
"The foundation of our success at NPG Cable for the last 45 years has been our family culture, where employees approach their daily work and make decisions as if they own the company," said Brian Bradley, NPG's Chief Administrative Officer, in a recent press release. "We are thrilled that Suddenlink, which has a great reputation, shares a similar culture."
Rahul Arora is a TMCnet contributor. He has worked as an editor and freelance writer for several reputed organizations in India. To read more of his articles, please visit his columnist page.
Edited by Tammy Wolf