CapRock Communications, a leading global satellite communications provider to extreme and remote locations, announced today that it has completed a US$200 million recapitalization through a majority share sale to Boston private equity firm ABRY Partners.
After generating a dramatic internal rate of return of 93 percent and a gross cash-on-cash return of 13.4 times for its previous owners, Genesis Park and The Riverside Company, CapRock’s senior management team initiated the process to recapitalize the company last year to support its long term global expansion strategy.
“CapRock has enjoyed a strong 25 year history, but the last four years have seen dramatic double digit compound annual growth fueled by globalization and vertical market expansion,” said CapRock CEO Peter Shaper. “The investment and support of Genesis Park and The Riverside Company have enabled CapRock to expand globally with acquisitions and new operations in Brazil, Indonesia, Mexico and West Africa. We are proud of the return on investment CapRock’s employees have generated for our shareholders and look forward to continuing to expand our service capabilities for our customers in partnership with ABRY.”
Founding Partner of Genesis Park Paul Hobby said: “the CapRock story has been a great one. Peter Shaper as well as CapRock’s President and COO, Errol Olivier, and all the employees at CapRock have put Houston on the map as a major hub for the global communications business.”
Suzanne B. Kriscunas, a Partner with The Riverside Company noted: “We are very proud of our involvement with CapRock. In less than four years, we were able to dramatically expand CapRock’s global presence. The result today is that CapRock is truly a major player in remote global communications.”
Reflecting on the deal closure, ABRY Partners’ Jay Grossman said, “CapRock’s track record of success, both financially and as a true market leader, makes it a compelling addition to our portfolio. We believe in the management team and their vision for expanding CapRock’s leadership in the remote satellite communications market.”
CapRock’s existing management team, including Shaper, Olivier and the firm’s outside directors will continue their leadership of the company, with ABRY replacing Riverside on the board of directors. CapRock intends to utilize the recapitalization to continue to expand its offering globally, lead the market in new products and services, and provide the highest quality and most reliable service available for the unique needs of its clients.