Cogeco Expands U.S. Operations
CBJ — Cogeco Communications Inc. is preparing to expand in the eastern United States by purchasing the MetroCast cable systems business in a deal valued at $1.4 billion US
The Montreal-based company will make the acquisition through its Atlantic Broadband subsidiary, which has a definitive purchase agreement with Harron Communications LP, a family business.
MetroCast’s networks include about 236,000 homes and businesses in New Hampshire, Maine, Pennsylvania, Maryland and Virginia and serve 120,000 Internet, 76,000 video and 37,000 telephony customers.
Cogeco said that revenue in 2017 is expected to be $230 million US and adjusted earnings before interest, taxes, depreciation and amortization is projected to be $121 million US.
The Caisse de depot pension system will provide $315 million US towards the deal, in return for a 21% equity stake in Atlantic Broadband’s holding company.
“The acquisition of the MetroCast cable systems allows Atlantic Broadband to increase its presence in the growing and lucrative U.S. cable market,” said Louis Audet, the president and CEO of Cogeco Communications, in a release.