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FairPoint Announces Agreement to Sell its Idaho Operations to Blackfoot Telecommunications Group
By: PR Newswire
Nov. 28, 2012 04:30 PM
CHARLOTTE, N.C., Nov. 28, 2012 /PRNewswire/ -- FairPoint Communications, Inc. (NasdaqCM: FRP) announced today that it has entered into an agreement to sell the capital stock of its Idaho-based operations to Blackfoot Telecommunications Group of Missoula, Montana, for $30 million in cash.
FairPoint's Idaho properties serve more than 5,000 residential and business customers in eastern Idaho. On an annual basis, the properties contribute approximately $8 million in revenue, approximately $5 million in EBITDA, with capital expenditures of approximately $1 million.
"FairPoint's operations in Idaho are ideally suited for Blackfoot Telecommunications Group," said Ajay Sabherwal, executive vice president and chief financial officer. "We believe that the resulting reduction of debt arising from this transaction enhances shareholder value."
Blackfoot Telecommunications Group traces its origins to the founding of the Blackfoot Telephone Cooperative in 1954, and through its various organizations delivers telecommunications services to more than 20,000 customers in western Montana and Idaho.
The transaction is expected to close in early 2013, subject to state and federal regulatory approvals. Eleven FairPoint employees will be joining the Blackfoot organization at closing.
About FairPoint Communications, Inc.
About Blackfoot Telecommunications Group
SOURCE FairPoint Communications, Inc.
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