CommScope Is Considering Sale of Broadband Arm CCS

(Bloomberg) — CommScope Holding Co. is exploring a sale of its broadband connectivity and cable arm, in accordance with folks with information of the matter, because the community infrastructure agency unloads belongings to repay debt. 

The firm is working with an adviser to gauge purchaser curiosity within the enterprise, generally known as CCS, stated the folks, who requested to not be recognized discussing confidential info. CommScope is seeking to fetch as a lot as $10 billion for CCS and has reached out to non-public fairness corporations and trade gamers, the folks stated.

CommScope can be evaluating alternate options together with a possible sale of the entire firm, a few of the folks stated, although the corporate’s present debt load of about $7.4 billion may make that an unlikely consequence. CCS is by far the corporate’s largest division by gross sales and working earnings, filings present. 

The deliberations are within the early phases and there’s no assure they’ll end in a transaction, the folks stated. A consultant for Claremont, North Carolina-based CommScope declined to remark. 

CommScope, whose shares have greater than quadrupled previously 12 months, jumped as a lot as 8.4% Friday, reversing earlier losses within the session. The shares closed up 3.8% to $5.70 in New York, giving the corporate a market worth of about $1.2 billion.

After years of fighting ballooning debt, CommScope has been de-leveraging by means of refinancings and divestitures. 

Last 12 months, it agreed to promote its cellular networks companies to Amphenol Corp. for $2.1 billion in money, utilizing the proceeds to repay debt. In December, CommScope reached a deal to refinance $4.3 billion in debt with collectors led by Apollo Global Management Inc. and Monarch Alternative Capital. 

CCS helps web suppliers ship high-speed broadband to houses, companies and different shoppers, in accordance with its web site. It additionally offers connectivity merchandise for information facilities and the infrastructure for connecting to networks. Data facilities are booming because of AI demand. 

The unit had internet gross sales of about $2.8 billion in 2024 and delivered about 67% of the corporate’s internet income, in accordance with its newest annual report. It additionally posted $466 million of working earnings, up 251% from a 12 months earlier. 

In 2018, CommScope agreed to purchase Arris International Plc for about $7.4 billion, together with debt. 

–With help from Maggie Eastland.

(Updates with closing share value in fifth paragraph.)

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