Done Deals: Harvest Adds On to Communication Dynamics –

Continuing to bolster its communications equipment platform, Harvest Partners recently invested $25.7 million for the acquisition of two companies by Communication Dynamics, which was created in 1996.

In April, the firm acquired Clifford of Vermont, a wire and cable supplier, and, in March, Comsource Broadband Technologies, a Canadian cable television distribution company.

Bill Kane, a general partner at New York-based Harvest Partners, declined to disclose individual transaction prices for the companies, but said the deals were primarily financed by Communications Dynamics’ existing lenders IBJ Whitehall, agent for the senior debt, and PNC Equity Managers, National City Capital and Exitor for the subordinated debt.

Communication Dynamics, based in Hershey, Penn., is the second largest distributor in the U.S. of equipment and supplies to operators of cable television systems. Harvest formed the company four years ago through the management buyout of TVC, based in Annville, Penn., and the add-on acquisition of U.S. Electronics Components Corp., located in Port Jefferson Station, NY. Comsource and Clifford mark the company’s ninth and tenth acquisitions, respectively.

However, Harvest is not yet through making acquisitions, Kane said.

“We’ll have in excess of $500 million in revenue this year, but the ultimate goal is to build a billion dollar company,” he added.

Clifford is a supplier of wire and cable to the telephone, signal, security, fiber optic and industrial control markets. It’s main product is called Quick-Pull, which produces wire assemblies for industrial and commercial applications that are sold exclusively through Clifford.

The acquisition of Clifford helps expand Communication Dynamics’ voice and data communications product lines, while Kane said Comsource extends the geographic reach of the existing base cable supply business.

Comsource, based in Ontario, Canada, and its proprietary product line, BGI, will operate as wholly owned subsidiaries of TVC Communications Canada, which will be an affiliate of Communication Dynamics.

The acquisition of Comsource represents Harvest’s and Communication Dynamics’ foray into the video distribution business. To date, the company’s interests had been focused more on voice and data, Kane said.

Additionally, with the latest acquisitions, the firm is following through on its plans to expand the company internationally.

When TVC was acquired, it already had operations in the U.K., but Harvest assisted with expansion into Latin America with the acquisition of Amtech in 1998, and now Comsource, which is Canadian.

Harvest will look to continue Communication Dynamics’ presence in other countries.

“There certainly is demand for communications infrastructure equipment and supplies in continental Europe and the U.K., so it would only make sense for further expansion there,” Kane said.

Harvest plans to close another add-on acquisition for Communication Dynamics this summer, he added, but declined to provide further information.