Sun Capital Buys Regional Cable Services Co. S&N Communications

Sun Capital Partners, Inc. said one of its affiliates has acquired S&N Communications, a regional provider of construction and maintenance services to telecom, cable, natural gas and utility companies.

Kernersville, N.C.-based S&N Communications sells fiber network construction, residential service connection and maintenance and underground utility locating services.

The company operates from 20 offices in Virginia, Maryland, North Carolina and Florida, and has a network of 250 subcontractors in 20 offices.

In a statement, Sun Capital Partners ‘ co-chief executive officer said his firm made the investment because of the attractive cash flow characteristics of the cable and utility contracting business, despite its niche market. The firm did not respond to a request for further comment.

The deal is reminiscent of a 2003 investment that Sun Capital had made in Dura-Line, a manufacturer of pipe and conduit products, which was acquired by Audax Partners in a roughly $100 million roll-up transaction in 2007.
Much Shelist, P.C. served as the legal advisor to Sun Capital on the transaction.

LBO Wire

By Jonathan Shieber