Denver, CO - Liberty Global plc (“Liberty Global”) (NASDAQ: LBTYA, LBTYB and LBTYK) today announced that, following regulatory approval, it has consummated its previously announced acquisition of 100% of the parent of Puerto Rico Cable Acquisition Company Inc., dba Choice Cable TV (“Choice”), the second largest cable and broadband services provider in Puerto Rico.
The combination of Choice’s operations with those of Liberty Cablevision of
Puerto Rico LLC (“LCPR”), which is 60% owned by Liberty Global and 40% owned by funds managed by Searchlight Capital Partners, L.P., creates the largest cable operator on the island with over one million homes passed, serving approximately 750,000 revenue generating units (“RGUs)1 and generating over $390 million of annual revenue.
As previously disclosed, the purchase price of approximately $272.5 million before transaction costs and other adjustments represents a multiple of approximately 6 times our estimate of Choice’s 2015 full-year operating cash
flow, as customarily defined by Liberty Global and adjusted for the projected annual impact of synergies following full integration. The transaction was largely funded through incremental debt borrowings of approximately $267.5 million at the combined Puerto Rican business, and equity contributions from Liberty Global and Searchlight of $10.2 million and $6.8 million, respectively.
Liberty Global’s 60% ownership interest in Choice will be attributed to the
“LiLAC Group”, which will track the performance of Liberty Global’s operations in Latin America and the Caribbean. Mike Fries, CEO of Liberty Global, stated,
“We are thrilled with the completion of this acquisition, which will benefit
Choice customers, drive scale efficiencies across Puerto Rico and further enhance long-term value of the LiLAC Group. The combination of organic growth and consolidation opportunities throughout the region makes LiLAC a
unique pure-play investment opportunity and we look forward to the trading of LiLAC Group shares on July 2.”
Eric Zinterhofer, co-founder of Searchlight, said, “The acquisition of Choice completes island-wide cable consolidation in Puerto Rico, which enhances LCPR's ability to invest in products, marketing and end-to-end business solutions. LCPR will continue to offer leading broadband speeds, innovative video packages and attractively priced service bundles, and we welcome serving the customers of Choice. We would also like to thank
Steve Simmons and Jim Holanda of Choice for being excellent stewards of the business.”