Who Owns Consumer Cellular?

Consumer Cellular is an American postpaid mobile virtual network operator (MVNO) based in Portland, Oregon. The company was founded in 1995 by John Marick and Greg Pryor. It offers cell phones and no-contract services for seniors aged 50 and over.

In Feb 2023, Consumer Cellular was named on the Forbes list of America’s Best Midsize Employers for the third year. The company has around 2,300 employees. [1]

Consumer Cellular primarily caters to Zoomers and Boomers – people in their 50s and older. The company seeks to address the negative stereotypes about aging and show that its target consumers are vibrant and social.

In Jun 2023, Consumer Cellular launched its Freedom Calls campaign. It features new ads that capture the vitality and limitless possibilities of the 50+ age group. [2]

Consumer Cellular operates only in the US. It has won several JD Power awards for wireless customer support in the Value MVNOs category. In Oct 2023, Consumer Cellular launched its Shot on Flip Phone campaign to help customers break through notification fatigue in today’s tech-driven world. The initiative included the new IRIS Flip phone. [3]

Consumer Cellular is known for its exemplary customer service with 100% US-based call centers. The company is expanding its retail footprint in several states, including Texas, Florida, Missouri, and Nevada.

In Feb 2024, Consumer Cellular opened a new location in Bristol Plaza in the Northeast. It is the 23^rd Consumer Cellular store. The company started opening brick-and-mortar locations in 2022. But who owns Consumer Cellular? [4]

Image Credit: Manuel Alvarez

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Who is Consumer Cellular’s Parent Company?

Consumer Cellular is owned and controlled by GTCR LLC, a private equity firm founded in 1980 and based in Chicago, Illinois. GTCR focuses on leveraged buyouts, recapitalization, growth capital, and roll-up transactions.

The parent company pioneered The Leaders Strategy for finding and partnering with top management and decision-makers in core domains. As of Aug 2023, Consumer Cellular had 154 employees.

Consumer Cellular isn’t the only GTCR subsidiary. GTCR also owns Antylia Scientific and minority or majority stakes in several ventures. Since its founding, GTCR has invested over $25 billion in over 270 companies.

The firm manages over $35 billion in equity capital. In Jul 2023, GTCR acquired a 55% stake in Worldpay for $18.5 billion from FIS. GTCR is now Worldpay’s majority shareholder. [5]

GTCR uses The Leaders Strategy to identify, purchase, and build market-leading companies via organic growth and strategic acquisitions. Since 2000, GTCR’s Financial Services & Technology (FS&T) team has invested in over 30 platforms and acquired over 375 firms for over $48 billion.

Its FS&T Group partnered with new Leaders Strategy executives in 2023 to purchase Foundation Source and a 50% stake in R&T Deposit Solutions. In Feb 2023, GTCR sold Paya to Nuvei for $1.3 billion in cash. [6]

GTCR focuses on the business & consumer services, tech, telecommunications, financial, and healthcare sectors. The firm invests from GTCR Fund XIV, with $11.5 million raised in May 2023, and Strategic Growth Fund, with $2.2 billion from 2022.

It applies the leader strategy investment approach across both funds and sectors. In Nov 2023, GTCR agreed to acquire Cloudbreak Health from UpHealth Inc. for $180 million. Cloudbreak offers tech-enabled, healthcare-focused language interpretation services. [7]

Consumer Cellular’s Ownership History

John Marick and Greg Pryor established Consumer Cellular in 1995. They are the company’s original owners. The founders’ idea was to provide low-cost services to all mobile users. Consumer Cellular became a preferred provider for American Association of Retired Persons (AARP) members in 2008.

This development allowed the company to expand its horizons to target senior citizens and consumers seeking no-contract phone plans. [8]

Consumer Cellular reinforced its position as the go-to wireless provider for AARP members. The firm designed its no-contract cell phones and service plans to address the needs of people aged 50 and above.

In 2010, Consumer Cellular won the top spot in the Consumer Reports no-contract cell phone service rating with an 87 score out of 100. The company was honored with the top customer satisfaction ranking from Consumer Reports in 2011 and 2012. [9]

Consumer Cellular partnered with Sears in 2011 to establish its first retail presence. The firm introduced its products in Target stores in 2014 and Best Buy in 2018. As of Dec 2023, Consumer Cellular operated America’s leading voice and data network, covering 99% of the US population.

Consumer Cellular was included on the Inc. 5000 list of America’s fastest-growing companies yearly from 2009 to 2020. The company had around 4 million subscribers as of Aug 2020.

In Oct 2020, GTCR acquired Consumer Cellular for about $2.3 billion. The private equity firm paid top dollar for Consumer Cellular because its 50-year-old customers are wealthier and more valuable than prepaid clients of rival brands like Mint Mobile and Tracfone. This acquisition deal transferred Consumer Cellular’s ownership to GTCR. [10]

Image Credit: Greg Rosenke

Consumer Cellular’s Shareholder Structure

Consumer Cellular is a wholly owned GTCR subsidiary. Its shareholder structure is directly linked to GTCR’s owners and investors. GTCR traces its roots to 1980 when Stanley Golder and Carl Thoma formed Golder Thoma.

Bruce Rauner and Bryan Cressey joined the firm to create Golder, Thoma, Cressey, and Rauner Inc. In 2000, Thoma and Cressey split away. The remaining firm was renamed GTCR. GTCR’s shareholder structure includes insiders and institutional investors. [11]

GTCR received a vintage fund in 1998. Since then, the equity firm has earned stellar returns on midsized deals like portfolio consolidation and corporate carve-outs. It has thrived under its co-chief executives Collin Roche and Dean Mihas, who own shares in the business.

Co-founder Golder died in 2000, and co-founder Rauner stepped down to join politics. Rauner still has a stake in GTCR. In 2021, Blackstone’s GP Stakes acquired a minority ownership interest in GTCR.

GTCR seeks financing from large banks to fund its carve-outs. In 2023, the firm acquired a majority stake in Worldpay using $8.4 billion in loans from Goldman Sachs, JPMorgan Chase, Citigroup, Wells Fargo, and UBS. These banks are GTCR’s partners and investors. [12]

GTCR’s shareholder structure includes private lenders, who provide funds for acquisitions. In Sep 2023, Blackstone, Golub Capital, and HPS backed GTCR’s buyout of the software platform Once-For-All.

The private lenders provided a £180 million ($228 million) loan that blends senior and junior debt. They also offered a line of credit for GTCR’s future acquisitions. [13]

GTCR has several investment partners with intertwined interests. Firms like CAPTRUST and The Carlyle Group have joint ventures with GTCR. In Sep 2023, CAPTRUST and GTCR raised $500 million via a minority investment from funds managed by Carlyle. The deal didn’t require GTCR or CAPTRUST to sell or exchange secondary shares. CAPTRUST will use the funds to finance its ongoing acquisition strategy. [14]

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