Davis acquires Stowe Cable; will add services, capacity

Bill Davis, who splits his time between Stowe and Florida, said Tuesday his company intends to pump more money into the cable company so it can provide faster Internet connections and more cable content.

He said Stowe Cable employees will keep their jobs, since the local touch and quick response give the company an edge over a giant such as Comcast.

“I’m interested in the Stowe community and any way I can improve technology,” he said. “This is a great opportunity in an industry we know, and in a town I love and want to see prosper.”

Matthew Rogers, chief financial officer for Davis Associates, said the transaction needs Public Service Board approval before the sale is final. How long?

“I’d say 90 to 120 days with a good wind behind us,” Rogers said.

Davis actually bought five small companies wrapped up in one, which provides cable TV service on both sides of Smugglers Notch: Stowe Cablevision, Jeffersonville Cable TV, Stowe Access, Stowe VOIP and Rolan LLC. They will now operate as Stowe Cable Holdings LLC.

Rogers said the previous owners would not allow him to disclose the specifics of the transaction, including how much Davis paid. The company had been up for auction, but Davis negotiated a sale before that could happen.

Stowe Cable was formerly owned by two men — Richard Landy and Bob Rohr — for 30 years, although the two have been embroiled in a court fight, each accusing the other of using company funds for personal use. Both owners said their legal feud wasn’t the impetus for selling the company.

In a prepared statement, Landy said Tuesday, “We have been honored to serve the communities of Stowe and Jeffersonville for over 30 years.”

Davis’s knowledge of the cable industry comes from his position as board chairman for the Miami cable telecom company OpitcalTel, which serves about 30,000 customers. Davis said he has already begun talking with some of the larger businesses in town about their IT needs.

“OpticalTel will help us really layer that knowledge on top of a great management system and a commitment to the town,” Davis said.

Rick Rothammer, longtime general manager of Stowe Cable, said the new ownership will lead to enhancements of an already solid infrastructure. Most significant will be running fiber-optic cable to many homes, particularly in the downtown area. He said the company spent the summer rebuilding the main hub of its fiber network, and will be able to hook fiber up and over the Notch to Jeffersonville, too.

Rogers said that while “the guy who lives 5 miles up his own road is going to have a problem” getting fiber-optic connections, the company should be able to provide that service to many customers.

“Jeffersonville, in particular, is full of young, tech-savvy people,” Rogers said.

Stowe cable history

Landy started Stowe Cablevision in 1983, and Rohr came on as co-owner from almost the very beginning. Landy was president and treasurer, Rohr the chairman and secretary.

Before Stowe, Landy owned cable companies in Swanton and St. Albans. He got his start in the industry working for CBS Television.

Stowe Cablevision is among the smallest cable companies in Vermont. According to the Vermont Department of Public Service, as of 2010, Stowe Cablevision had just under 1,500 customers, including Jeffersonville. Comcast reported 113,213 Vermont customers that year.

Landy said the benefits of being a small company outweigh the cons. Large companies can offer more up-to-date technology and possibly lower prices, but small ones are more user-friendly.

Local and national

Bill Davis has a Florida address —“I do like to wear shorts whenever I can,” he said — but he’s a Vermonter. His early childhood was in Morristown, his high school years in Cabot, college at the University of Vermont.

His business interests cover a wide geographical area, and a wide variety. He has invested in a cheese company on the West Coast, and holds a controlling interest in an electronics security business in the United Kingdom. He’s heavily invested in the energy sector, with stock in oil wells in Louisiana and Mississippi.

He has held high positions at two cheese companies — board chairman at Rondele in Wisconsin, and president and CEO of Cabot in Vermont. He was also the director of Green Mountain Coffee Roasters for about 20 years, from 1993 to 2012, resigning after critics claimed he and the company president used insider information in selling stock.

Rothammer said he and Davis share the same philosophy for the company, and he is happy that the new owner can leverage some of his South Florida telecom contacts and resources.

“We’re delighted,” Rothammer said. “He’s come into the office, and everyone has really taken a liking to him.”