Century old telecom company sold to private equity firm

Bruce Telecom sold to private owners Municipally owned Bruce Telecom was sold to a private equity firm for $32 million. CTV’s Scott Miller explains why.

For the first time since its creation 112 years ago, Bruce Telecom has new owners.

“We are on one hand excited about the possibilities this transaction affords the municipality, and on the other hand, we acknowledge the sentimental value that no money can ever buy for Bruce Telecom,” said Municipality of Kincardine Mayor Ken Craig.

Thursday morning, the Municipality of Kincardine approved the sale of Bruce Telecom to Windsor Private Capital for $32.6 million. It’s more than a business transaction for the municipality, as Bruce Telecom, which provides phone, internet, and TV services to thousands of customers in Bruce County, was started in 1911 by forward thinking residents, when no one else wanted to provide communications to the region.

“There was no provider at that time that was interested in offering that. But, there was dedicated farmers and business people that put up collateral and established this company, and it has grown, and prospered through the years to where it is now,” said Craig.

The sale of Bruce Telecom is also the end of an era for municipally owned telecoms in Canada. Bruce Telecom was one of the last communications companies in the entire country that wasn’t privately owned.

“We believe that though it’s been extremely valuable in the past, the liquid assets, being the basis of a legacy fund, can be as beneficial for our municipality for generations to come,” said Craig.

No layoffs or immediate changes are expected in the wake of the sale that may take until the end of the year to officially finalize.

“We are pleased to confirm that Bruce Telecom’s management, employees, and partners remain unchanged, and will continue to provide customers with the same high quality service they depend on,” said Windsor Private Capital Senior Vice-President Marco Di Carlantonio.

“Windsor Private Capital brings capital and strategic connections that will strengthen our company’s position in the market, benefitting our employees and customers,” said Bruce Telecom CEO, Ray Lahoud.

Craig said the $32.6 million Bruce Telecom windfall isn’t yet earmarked for any specific project, as the community embarks on a rapid growth plan, in the wake of plans to build, as many as five new nuclear reactors, at the nearby Bruce Power Nuclear station.

“Generations will benefit from what Bruce Telecom has provided in generations past,” said Craig.