Cable One said it has entered into an agreement with Hargray Communications where it will contribute cable systems in Alabama to the Hilton Head, S.C.-based cable operator in exchange for an equity stake in the company.
Hargray has cable, telephone and broadband subscribers in South Carolina, Alabama, Georgia and Florida. As part of the deal, Cable One will contribute its cable system serving Anniston, Alabama and surrounding areas, in exchange for a minority equity stake in Hargray. The deal is expected to close this fall.
Hargray already serves residents in nearby Pell City, Ala., and said in a press release the Cable One deal will expand its presence in the state and add residential and commercial customers to its growing business throughout the southeast.
"At a time when reliable, high-speed Internet access has never been more essential to enable people and communities to connect and thrive, we are pleased to add the Alabama assets of Cable One to our growing portfolio," Hargray chairman and CEO Michael Gottdenker said in the press release. "We look forward to building upon Cable One's network investments to deliver premium communications products and solutions to homes and businesses in Anniston, Jacksonville, Oxford, and the surrounding communities."
Hargray is owned by the Pritzker Organization, the merchant bank for the Tom Pritzker family. Tom Pritzker is also executive chairman of Hyatt Hotels Corp. Other investors in Hargray include Stephens Capital Partners, Redwood Capital Investments, WaveDivision Capital, and management.
"We believe Hargray, whose values mirror our own, will be an excellent fit for the Anniston community. Hargray will be able to use its regional scale to further invest in the Anniston market while continuing to provide Anniston customers with the latest technological advancements and the highest level of customer care," Cable One CEO Julie Laulis said in a press release. "Additionally, and as a result of this transaction, Cable One will have the opportunity to share in Hargray's growth while increasing our opportunities for continued investment."