News Releases
NEWS RELEASE FOR:
Hargray Communications Group
January 5, 2007
Hargray Announces Initiative To Enhance Its Long Term Strategic Position
Expects to Bring on Leading Investor Group To Help Grow Company
Hilton Head Island, SC - Hargray Communications Group, a private telecommunications provider serving southeastern South Carolina and Georgia (mainly within a 100 mile radius of Hilton Head Island, SC), announced here today that it has reached an agreement in principal which, if consummated, would result in a change of ownership of the company. The agreement, embodied in a Letter of Intent, is between Hargray, Morningstar Management, Inc., and Quadrangle Capital Partners, a private equity fund exclusively focused on the media and communications industries with an excellent track record of supporting the long-term growth of its investments.
Gloria S. Taggart, president of Hargray and daughter of its founder Leroy Harvey, Sr., who started the company in 1947, told Hargray employees earlier today that the company's owners, the Shepard and Harvey families (who constitute the company's Board of Directors) have, subject to the satisfaction of certain contingencies, agreed to move forward with this strategy. The Shepard and Harvey families believe strongly that attracting a new investor will enable Hargray Communications Group to satisfy the demands of its fast-growing market area and continue to deploy industry-leading technologies while simultaneously maintaining its longstanding commitment of excellence to its more than 400 employees and the communities it serves.
Ms. Taggart said the parties will be undergoing due-diligence reviews and exclusive contract negotiations during the next 60 to 90 days. When that period is complete a further announcement will be made.
HARGRAY COMMUNICATIONS GROUP - Headquartered in Hilton Head Island, SC, this family-owned telecommunications company has been in operation since the 1940s servicing primarily Beaufort and Jasper Counties in South Carolina plus the greater Savannah, Ga. market. The company's operations include traditional telephone carrier services, as well as cable television, wireless telephone, internet services and a telephone directory publishing operation. It has more than 400 employees. Website: www.hargray.com
Quadrangle Capital Partners manages approximately $3 billion and is the private equity arm of Quadrangle Group LLC, a private investment firm based in New York City with more than $5 billion in assets under management. Quadrangle invests in media and communications companies through separate private and public investment strategies, and in the securities of financially troubled companies across all industries through a distressed debt investment program. All investment strategies seek to maximize value by leveraging the investment teams' extensive experience, knowledge and industry relationships. Website: www.quadranglegroup.com
Morningstar Management - Based on Hilton Head Island, Morningstar Management is a nine year old investment banking advisory firm which has completed more than 30 transactions with a variety of financial and business partners. Most recently, in partnership with equity financing support, it has been focused on acquiring a strategic position in the telecommunications sector. Website: www.morningstarmergers.com