Cable TV and Pharma Deals Loom Large


July 23, 2012

The deal of the week looks to be a secondary buyout involving a US cable tv and broadband operator, called Suddenlink Communications. The USD 2 billion buyout is led by BC Partners and Canada Pension Plan’s CPP Investment Board, according to the WSJ. The syndicate aims to acquire Suddenlink from GS Capital Partners, Quadrangle Group and Oaktree Capital Management.


According to the report, this deal is the latest in a number of cable industry transactions amid industry consolidation in North America, a trend that has been ongoing over the past two or three years.


Large cable companies have often outbid PE firms, says the WSJ, including Cablevision Systems, which paid USD 1.4 billion for Bresnan Communications, while Time Warner Cable paid USD 3 billion for Insight Communications, and as recently as a few weeks ago, Canadian cable company Cogeco Cable announced a plan to acquire Atlantic Broadband for nearly USD 1.4 billion.


Coming in as a close second for deal of the week is another American transaction, a public to private deal led by TPG Capital which aims to acquire Par Pharmaceuticals, a US-based generic drugmaker, according to a Bloomberg report. The deal is valued at approximately USD 1.9 billion. Further bidding on the company is expected until the end of August.

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