NEW YORK, N.Y., April 7, 2005 – Falconhead Capital, of New York, a private investment firm specializing in leisure-, lifestyle- and media-related businesses, today announced a definitive agreement to sell its holding in Maritime Telecommunications Network (MTN), of Miramar, Fla., to a financial buyer, in an all-cash transaction that the parties expect to complete this week.
MTN, which Falconhead acquired in February 2003, is the leading provider of satellite-based communications, networking and other services to the cruise and offshore oil and gas industries. For Falconhead, the MTN transaction is expected to generate a 5.0X return on invested capital achieved in its holding period of just over two years.
David S. Moross, Chairman and Chief Executive Officer of Falconhead, said: “Our investment in MTN has been a unique opportunity to leverage our deep experience and extensive relationships in the leisure, lifestyle and media sectors to add value to the number-one player in a vital and rapidly growing segment of the $15 billion global cruise ship industry. Due in large part to our thorough knowledge of and intense operational involvement in the business, as well as our close partnership with management, MTN has been successful on several fronts and has solidified its leadership position. We wish MTN’s CEO, Dave Kagan, and his team the very best as they continue to implement their business and growth strategy, and build on our shared accomplishments.”
During the period of Falconhead's ownership, MTN has significantly expanded in its core markets, made significant inroads in its military business, and achieved a number of significant operational and financial milestones. In March 2004, MTN launched a joint venture with Cingular Wireless (formerly AT&T Wireless) to give passengers on North American cruises the ability to use their own mobile phones at sea for the first time. The company recently established Maritime Satellite Television Network, which will be the first service to bring land-based-quality television service to cruise ships. In March 2004, Falconhead completed a recapitalization of MTN, through which all remaining acquisition-related debt was retired, approximately 80 percent of the equity capital committed to the acquisition was returned to Falconhead investors, and a new, robust and flexible bank facility was arranged for MTN.
David B. Kagan, Chief Executive Officer of Maritime Telecommunications Network, said: "I want to thank David Moross and his colleagues at Falconhead for their strong support of MTN over the past two years. During that period, we have enjoyed an outstanding relationship with the entire Falconhead team, which shared its extensive sector knowledge, experience and contacts with us. As a result, MTN has grown dramatically by forming many new customer relationships and entering high-value business segments. Thanks largely to Falconhead’s leadership, we are very well positioned for continued growth and strong financial performance under our new ownership group.”
Roy Winnick or Mark Semer
Kekst and Company
212-521-4842 or 4802