CommScope Is Considering Sale of Broadband Arm CCS
(Bloomberg) -- CommScope Holding Co. is exploring a sale of its broadband connectivity and cable arm, according to people with knowledge of the matter, as the network infrastructure firm unloads assets to repay debt.
The company is working with an adviser to gauge buyer interest in the business, known as CCS, said the people, who asked not to be identified discussing confidential information. CommScope is looking to fetch as much as $10 billion for CCS and has reached out to private equity firms and industry players, the people said.
CommScope is also evaluating alternatives including a potential sale of the whole company, some of the people said, though the company's existing debt load of about $7.4 billion could make that an unlikely outcome. CCS is by far the company's largest division by sales and operating income, filings show.
The deliberations are in the early stages and there's no guarantee they'll result in a transaction, the people said. A representative for Claremont, North Carolina-based CommScope declined to comment.
CommScope, whose shares have more than quadrupled in the past year, jumped as much as 8.4% Friday, reversing earlier losses in the session. The shares closed up 3.8% to $5.70 in New York, giving the company a market value of about $1.2 billion.
After years of struggling with ballooning debt, CommScope has been de-leveraging through refinancings and divestitures.
Last year, it agreed to sell its mobile networks businesses to Amphenol Corp. for $2.1 billion in cash, using the proceeds to repay debt. In December, CommScope reached a deal to refinance $4.3 billion in debt with creditors led by Apollo Global Management Inc. and Monarch Alternative Capital.
CCS helps internet providers deliver high-speed broadband to homes, businesses and other clients, according to its website. It also provides connectivity products for data centers and the infrastructure for connecting to networks. Data centers are booming thanks to AI demand.
The unit had net sales of about $2.8 billion in 2024 and delivered about 67% of the company's net revenue, according to its latest annual report. It also posted $466 million of operating income, up 251% from a year earlier.
In 2018, CommScope agreed to buy Arris International Plc for about $7.4 billion, including debt.
--With assistance from Maggie Eastland.
(Updates with closing share price in fifth paragraph.)
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