SSG Capital Advisors acted as the investment banker to Tri-Wire Engineering Solutions in the sale of substantially all of its assets to ITG Communications. The sale was effectuated through a Chapter 11 Section 363 process in the U.S. Bankruptcy Court for the District of Massachusetts (Eastern Division). The transaction closed in October.
Headquartered in Salem, NH, Tri-Wire is an independent provider of consumer broadband installation and maintenance for cable operators. The company’s technicians operate in 13 regions throughout the Northeast and Mid-Atlantic. The company leveraged its base of technical services talent to expand into fiber construction, fiber-to-the-home (FTTH) and enterprise services.
For more than 20 years, Tri-Wire met its financial and growth targets. However, shortly after the completion of an ESOP transaction, the company experienced operational and working capital issues, as well as unforeseen legal expenses. A new senior management team was brought in to accelerate the company’s strategic vision, expand its market position and focus on communication services with higher margins and recurring revenues. Despite strong consumer demand for faster internet and fiber optic services, including new installation requests as consumers worked from home or relocated during the COVID-19 pandemic-related lockdowns, revenue decreased as larger multiple-system operators restricted installation services and delayed buildouts of new FTTH networks during the beginning of the COVID-19 pandemic.
SSG was retained in July 2021 to conduct an expedited marketing process and solicit interest from both strategic and financial buyers. The marketing efforts resulted in several offers, with the bid from ITG ultimately determined to be the highest and best offer for substantially all of the company’s assets. The company filed for Chapter 11 protection in September 2021 with ITG as the proposed stalking horse purchaser. While several parties conducted due diligence up until the bid deadline, no competing bids were received and the sale to ITG was approved by the bankruptcy court and closed in October.
ITG Communications, headquartered in Hendersonville, TN, is a provider of fulfillment, construction and project management services to the cable and telecommunications industries.
Casner & Edwards provided counsel to Tri-Wire Engineering Solutions. Getzler Henrich & Associates served as financial advisor to Tri-Wire Engineering Solutions. Safford Motley served as counsel to ITG Communications. Goulston & Storrs served as counsel to ITG Communications. Seyfarth Shaw served as counsel to the senior secured lender and Jeffrey D. Sternklar served as counsel to the unsecured creditors committee.
