Charter Communications To Acquire Avalan Cable
Agreement Will Add 260,000 Customers To Paul Allen's Wired World
ST. LOUIS, MO, MAY 17, 1999 – Charter Communications, Inc. and Avalon Cable Television today announced a transaction in which Charter will acquire Avalon and its cable systems serving customers in Michigan and New England. Avalon expects to deliver approximately 260,000 customers at closing. As part of the transaction, Charter will assume certain outstanding Avalon debt. The purchase price is approximately $845 million.
Following regulatory approvals, the acquisition is expected to close during the fourth quarter of 1999. With the completion of this transaction and other announced acquisitions, Charter Communications will serve approximately 3.9 million customers.
In making the announcement, Jerald L. Kent, Charter's President and CEO said, "Avalon's Michigan systems are in the process of being upgraded and we look forward to accelerating those technological advancements in order to offer new services to customers." Systems in Michigan include communities around Traverse City and Grand Haven. Kent added, "The systems in New England are primarily contiguous to our systems and those we will acquire from Greater Media in central Massachusetts."
Joel C. Cohen, President and CEO of Avalon commented, "Our Chairman, David Unger, and I are pleased to know that Charter will continue to expand and improve the cable and telecommunications services provided to our customers throughout our clusters in Michigan and the Northeast."
Avalon is a portfolio company of ABRY Broadcast Partners III, L.P. ABRY Broadcast Partners III, LP is managed by ABRY Partners, Inc., a Boston-based private equity firm managing $825 million in equity capital and specializing in the media business.
Charter, a Wired World company, is among the country's leading broadband communications companies. Following the close of all pending transactions, Charter will serve approximately 3.9 million customers. Charter was ranked as the eighth fastest growing company in the United States by Inc. magazine on its 1998 Inc. 500 list. J.D. Power & Associates survey of cable customers ranked Charter among the top three companies based on quality of service in 1998. Charter offers an array of services including cable television under the Charter brand; high speed Internet access via Charter Pipeline ™; advanced digital video programming services under the Charter Digital Cable™ brand and Charter Paging. Headquartered in St. Louis, MO, Charter was acquired by Paul G. Allen in 1998. More information about Charter can be accessed on the Internet at www.chartercom.com.
Avalon was represented in the transaction by Jack Woodruff, Partner, of Waller Capital Corporation.