Oak Hill and Cinelli Family to Sell Metronet to KKR and T-Mobile Joint Venture
24 Luglio 2024 - 3:11PM
Business Wire
Joint Venture Will Offer Leading Fiber Solution
to More U.S. Consumers
Metronet (the “Company”) today announced that, together with its
majority shareholders, Oak Hill Capital (together with its
affiliates, “Oak Hill”) and the Cinelli family, it has entered into
definitive agreements to sell the Company to a Joint Venture (“JV”)
between KKR and T-Mobile. Following the transaction’s close,
Metronet will become a wholesale services provider for its retail
customers and 100% of its residential fiber retail operations and
customers will transition to T-Mobile. T-Mobile will have full
responsibility for residential customer acquisition and support,
leveraging its differentiated retail, marketing, brand and service
model, and will utilize Metronet’s deep digital and fiber
infrastructure expertise to expand to more households with fiber
broadband services. Metronet will focus on build plans, network
engineering and design, network deployment, and customer
installation. An affiliate of Oak Hill will make a minority
investment in the JV, and the Cinelli family will also remain
minority investors in the JV alongside KKR and T-Mobile.
Metronet’s management team and Oak Hill have worked together for
more than 10 years to build Metronet into the leading independent
fiber-to-the-home (FTTH) operator in the U.S., and KKR has been a
minority investor in the Company since 2021. Today, Metronet’s
fiber network reaches more than 2 million households across 17
states, with pure play fiber solutions that are built on a
state-of-the art broadband platform. Metronet has the highest build
pace of any private fiber company in the U.S., the third fastest
build pace nationally overall and has Net Promoter Scores well in
excess of industry averages.
“We started Metronet to bring Main Street USA two things their
internet providers weren’t delivering—hyper fast speeds and warm
customer service,” said John Cinelli, co-founder and current
chairman of Metronet. “Today we have found a strong partner in
T-Mobile, a digital infrastructure leader equally focused on
cutting-edge technology and the customer experience. We could not
have grown so far, so quickly, to reach this moment without the
decade-long support of Oak Hill Capital and, for the last three
years, KKR. Their visionary support, together with our hardworking
associates, have provided the capital and energy to build the best
fiber-to-the-home company in the U.S.”
“Our involvement in the Metronet expansion story has been a
joyful experience for all of us at Oak Hill—from our first meetings
with John Cinelli, Al Cinelli and Lohn Weber in 2010, to our
initial investment in the company in 2014, to the decade of
remarkable growth we have achieved together since that time. Over
the past 10 years, Metronet has expanded its network from 10 small
towns in Indiana to over 300 communities across a 17-state
footprint, and from 80,000 locations passed to more than 2 million,
all while maintaining an unwavering commitment to providing an
outstanding experience for its loyal customers and dedicated
associates,” said Benjy Diesbach, Senior Operating Advisor, and
Scott Baker, Managing Partner of Oak Hill. “We are extremely
grateful for the contributions of each of the talented executives
with whom we have worked so closely over the years, and we remain
excited about Metronet's future potential with T-Mobile and
KKR.”
“Metronet is an amazing American business success story, thanks
in large part to Al and John’s entrepreneurial spirit and
leadership, and Oak Hill’s support. We are proud of all that
Metronet has achieved since we first invested in the Company in
2021, and are thrilled to continue to work with the management team
and their associates to build upon the Company’s 20-year legacy. We
look forward to embarking on this new chapter with T-Mobile and
supporting the Company in its future growth,” said Waldemar
Szlezak, Partner and Global Head of Digital Infrastructure at
KKR.
The transaction is expected to close in 2025, subject to
customary closing conditions and regulatory approvals.
Bank Street Group LLC and TD Securities served as financial
advisors to Metronet. Paul, Weiss, Rifkind, Wharton & Garrison
LLP and Polsinelli served as legal counsel to Metronet. Lazard
served as financial advisor to Oak Hill.
Barclays and Morgan Stanley & Co. LLC are serving as lead
financial advisors to KKR, with Goldman Sachs, Mizuho and MUFG also
serving as financial advisors. Simpson Thacher is serving as KKR’s
legal advisor.
About Metronet
Metronet is PCMag's “Fastest Major ISP” for 2023 and 2024,
providing multi-gigabit internet service to homes and businesses in
cities like Colorado Springs, Des Moines, Indianapolis, Lexington,
Norfolk, Tallahassee and more than 300 other communities across 17
states. Expanding its fiber-optic network in more than 90
communities at any one time, Metronet has become the country's
largest and fastest-growing privately owned fiber-to-the-home
company. More information on the Evansville, Ind.-based company can
be found at metronet.com.
About Oak Hill Capital
Oak Hill is a longstanding private equity firm focused on the
North America middle-market. Oak Hill applies a specialized,
theme-based approach to investing in Media & Communications,
Industrials, Services, and Consumer. The Firm implements a highly
systematic approach to theme development, proactive origination,
and value creation in partnership with management to build
franchises of lasting value. Over the past 35+ years, Oak Hill and
its predecessors have raised over $23 billion of initial capital
commitments and co-investments and invested in over 110 companies.
For more information, please visit www.oakhill.com.
About KKR
KKR is a leading global investment firm that offers alternative
asset management as well as capital markets and insurance
solutions. KKR aims to generate attractive investment returns by
following a patient and disciplined investment approach, employing
world-class people, and supporting growth in its portfolio
companies and communities. KKR sponsors investment funds that
invest in private equity, credit and real assets and has strategic
partners that manage hedge funds. KKR’s insurance subsidiaries
offer retirement, life and reinsurance products under the
management of Global Atlantic Financial Group. References to KKR’s
investments may include the activities of its sponsored funds and
insurance subsidiaries. For additional information about KKR &
Co. Inc. (NYSE: KKR) please visit KKR’s website at www.kkr.com. For
additional information about Global Atlantic Financial Group,
please visit Global Atlantic Group’s website at
www.globalatlantic.com.
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Media Contacts
Metronet Scott Shapiro media@metronet.com
Oak Hill Nadia Damouni / Kiki O’Keeffe
pro-OakHillCapital@prosek.com
KKR KKR Media Relations Media@KKR.com
Grafico Azioni KKR (NYSE:KKR)
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Da Ago 2024 a Set 2024
Grafico Azioni KKR (NYSE:KKR)
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