Time Warner Cable to Acquire Cable Systems from NewWave Communications
Time Warner Cable Inc. (NYSE: TWC) and NewWave Communications today announced a definitive agreement under which Time Warner Cable will acquire cable systems serving approximately 70,000 basic video subscribers, 42,000 HSD subscribers, and 26,000 phone subscribers in Kentucky and western Tennessee for $260 million in cash. “This deal is yet another example of our disciplined approach to capital allocation and M&A. Taking into account a full tax step-up and significant operational synergies, the deal enables us to expand our cable footprint at a purchase price that compares favorably with Time Warner Cable’s current trading multiples,” said Rob Marcus, President and COO, Time Warner Cable. “We look forward to serving these customers and bringing to them all the dynamic products and services Time Warner Cable has to offer.”
“NewWave acquired many of these properties as long ago as 2003 and this transaction allows NewWave to realize a return for our investors while allowing our team to concentrate on our ongoing operations in our other service areas. We’re very pleased to work with Time Warner Cable on this transaction and we are sure they will be a great company for our communities and employees,” said Jim Gleason, CEO of NewWave Communications. “The NewWave team has done a tremendous job of improving the overall products and service to our customers in Kentucky and Tennessee since acquiring these systems and we thank them for their efforts.”
This transaction is subject to customary conditions, including receipt of FCC, franchise and antitrust approval. The parties expect closing to occur during the fourth quarter of 2011. Time Warner Cable and NewWave Communications will work together to provide a smooth transition for customers and employees.
RBC Daniels acted as exclusive financial advisor and K&L Gates LLP acted as legal advisor to NewWave on this transaction. Edwards, Angell, Palmer & Dodge LLP served as legal advisor to Time Warner Cable.
Caution Concerning Forward-Looking Statements
This document includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations or beliefs, and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive, technological, strategic and/or regulatory factors, and other factors affecting the operations of Time Warner Cable Inc. More detailed information about these factors may be found in filings by Time Warner Cable Inc. with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Time Warner Cable is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.
Time Warner Cable
Alex Dudley, 212-364-8229
Justin Venech, 212-364-8242
Tom Robey, 212-364-8218
Laraine Mancini, 212-364-8202
James M. Gleason, 573-472-9500
Keith Davidson, 573-472-9500
- About Pamlico
- About NewWave Communications
- About Time Warner Cable
Pamlico Capital is a private equity firm founded in 1988 that invests in growing middle market companies in North America. Pamlico Capital seeks control-oriented growth equity investments of up to $200 million alongside founders and proven leaders in its target industries: communications, healthcare, services and software. The firm, based in Charlotte, NC, has assets under management of almost $3.5 billion. For additional information, please visit www.pamlicocapital.com.