TD&I Cable Maintenance and Tower Arch Capital Complete the Acquisition of Underground Systems

LAKELAND, Minn., July 10, 2024 /PRNewswire/ -- TD&I Cable Maintenance, LLC ("TD&I") and Tower Arch Capital are pleased to announce the acquisition of Underground Systems Utility, LLC and Underground Systems Utility Contractors, LLC (collectively "Underground Systems" or "Underground") and the go-forward partnership with their founder and owner, Kent Walbeck.

Founded in 1994 and headquartered in Eau Claire, WI, Underground Systems provides directional drilling, cable plowing, and other related services for the installation and maintenance of fiber optic networks and other critical infrastructure. Underground's customers consist of national and local telecom providers in addition to utility cooperatives and municipalities.

Donavin Berg, CEO of TD&I, remarked, "The acquisition of Underground further solidifies TD&I's position as the preeminent provider of underground infrastructure services for the telecom and utility markets across the upper Midwest. This partnership brings together two top-tier operators and expands TD&I's presence in the state of Wisconsin and the Upper Peninsula."

Regarding the transaction, Kent Walbeck, Founder of Underground, said, "Underground has been a long-time, trusted provider of underground infrastructure services for our customers. The partnership with TD&I and Tower Arch Capital will enable us to continue to provide the high-quality services expected by our local communities while expanding our presence throughout Wisconsin and beyond."

David Topham, a Partner at Tower Arch Capital, remarked, "We couldn't be more excited about the addition of Kent and the entire Underground team. Underground's standard of excellence makes it a natural fit with TD&I. It has been exciting to see the growth and progress made by TD&I and we look forward to supporting its next phase of growth."

Terms of the transaction were undisclosed. Financing for the transaction was provided by Zions Bank, Johnson Bank, First Citizens Bank & Trust, and First Financial Bank. Advisors for Tower Arch Capital included Gibson, Dunn & Crutcher LLP and BDO USA, LLP. Underground was advised by Fabyanske, Westra, Hart & Thomson, PA.

About TD&I Cable Maintenance

TD&I Cable Maintenance is a Lakeland, MN based specialty infrastructure services provider primarily focused on the installation and maintenance of underground and ariel telecom and cable networks and electrical infrastructure. TD&I services many of the largest telecom, cable, and fiber providers in the upper Midwest and has been a trusted partner in the region for over 30 years. For more information, please visit www.tdicable.com.

About Underground Systems

Underground Services is an Eau Claire, WI based specialty infrastructure services provider primarily focused on the installation and maintenance of underground telecom and cable networks. Underground services national and local telecom and fiber providers in Wisconsin and the Upper Peninsula of Michigan and has been a trusted partner in the region for over 30 years. For more information, please visit www.undergroundsystems.net.

About Tower Arch Capital

Headquartered in Salt Lake City, UT, Tower Arch Capital is a lower-middle-market private equity firm. Tower Arch seeks to partner with and grow high-quality family- and entrepreneur-owned companies to deliver long-term value for their management teams and investors. Tower Arch brings operational, consulting, and financial expertise to companies to help them improve their operations, scale, and grow. Target investments include control positions in businesses with EBITDA between $5 million and $30 million. For more information, please visit www.towerarch.com.

SOURCE TD&I Cable Maintenance