Cable One’s $2.2 Billion Acquisition of Hargray Communications

On February 15, 2021, Cable One, Inc. (“Cable One”) announced that it has entered into a definitive agreement to acquire the equity interests in Hargray Acquisition Holdings, LLC (“Hargray”) that it does not already own. The equity interests to be acquired by Cable One represent approximately 85% of Hargray on a fully diluted basis. The transaction, which implies a $2.2 billion total enterprise value for 100% of the equity interests of Hargray on a debt-free and cash-free basis, will expand Cable One’s presence into the Southeastern U.S. and enable Cable One to capitalize on Hargray’s experience and expertise in fiber expansion. Cravath is representing Cable One in connection with the transaction.

The Cravath team is led by partner Robert I. Townsend III and includes associates Kelly M. Smercina, Michael P. E. Dooley and Eric S. Goodwin on M&A matters; partner Joseph D. Zavaglia and associates Benjamin G. Joseloff and Nastassia Shcherbatsevich on financing matters; partner Eric W. Hilfers and associate Christopher C. Gonnella on executive compensation and benefits matters; partner Lauren Angelilli and associate Peter W. Rogers on tax matters; partner David J. Kappos and associate Carys J. Webb on intellectual property matters; partner Matthew Morreale on environmental matters; and practice area attorney Brian M. Budnick on real estate matters. Joana W. Li also worked on tax matters.