Hargray Communications Group, Inc. and The Pritzker Organization, L.L.C. announced today that the Tom Pritzker Family Business Interests 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.