|[June 26, 2014]
Southern Cross Group to Acquire Grupo Expansión from Time Inc.
MEXICO CITY & NEW YORK --(Business Wire)--
Southern Cross Group, a Latin-American private equity firm, and media
company Time Inc. (News - Alert) today announced that Southern Cross is acquiring Grupo
Expansión (GEx), a Time Inc. subsidiary, subject to regulatory
approvals. Terms were not disclosed.
"GEx is a successful multiplatform player with tremendous growth
potential. We are confident that the company's strategic plans focused
on technological innovation, its leading brands and its strong
management team are the right building blocks to achieve continued
success," said Cesar Perez Barnes, Partner at Southern Cross Group,
"Time Inc.'s prime focus today is on growing core assets in the U.S. and
U.K.," said Joe Ripp, Chairman and CEO of Time Inc. "Therefore, we
believe GEx will have better opportunity to maximize its value under the
ownership of Southern Cross."
GEx was founded in 1966 and acquired by Time Inc. in 2005. It is
Mexico's second largest magazine publisher with 16 titles* including Expansión,
Quién, and Life & Style and 10 websites such as Mediotiempo
and Metros Cúbicos and a monthly reach of nearly 30 million.
During 2013, GEx revenues represented less than 2% of Time Inc. combined
Manuel Rivera, President and CEO of GEx, who will continue to run the
company following the acquisition, commented: "I am extremely proud that
Latin America's largest independent private equity fund with almost 20
years experience in the region has chosen GEx as a portfolio company.
Southern Coss Group is committed to preserving the good name and values
of our company while significantly investing in its growth."
GEx will continue to license the Time Inc. and Time Warner (News - Alert) brands that
have been part of the portfolio (CNNMéxico, InStyle, and Travel
+ Leisure) following the acquisition.
About Southern Cross Group
Southern Cross is a private equity firm founded in 1998 to make
investments in Latin American companies that have potential for improved
performance and growth. Since inception, Southern Cross has invested in
over 25 companies in a wide range of industries, including: consumer
goods, retail, homebuilding, entertainment, logistics, pharmaceuticals,
energy, oil & gas, public services, IT, telecom, housewares, ports,
shopping mall development and shipping. Southern Cross is savvy
regarding the digital space and content development business as it has
successfully invested in internet based companies such as deAutos.com
and clickhotels.com, amongst others. Currently, Southern Cross is
investing Fund IV which has commitments of $1.7 billion dollars. For
further information, please visit: www.southerncrossgroup.com.
About Time Inc.
Time Inc. (NYSE:TIME) is one of the largest media companies in the world
reaching more than 130 million consumers each month across multiple
platforms. With influential brands such as TIME, PEOPLE, Sports
Illustrated, InStyle, Real Simple, Wallpaper, Travel + Leisure and Food
& Wine, Time Inc. is home to celebrated events and franchises including
the FORTUNE 500, TIME 100, PEOPLE's Sexiest Man Alive, Sports
Illustrated's Sportsman of the Year, the Food & Wine Classic in Aspen
and the Essence Festival.
About Grupo Expansión
Creating passionate media experiences to enrich the lives of readers and
users is Grupo Expansión's mission. The multiplatform group has a solid
portfolio of 16 magazines* and 10 websites. GEx's brands include: Expansión,
ELLE, Obras, Manufactura, IDC (News - Alert), Quién, ELLE Decoration, InStyle, Accént,
Aire, Gran Plan, Quo, Chilango, Life & Style, Metros Cúbicos, Travel +
Leisure, Revolution, CNNExpansión, Mediotiempo, ADNPolítico and CNNMéxico.
*11 magazines are owned by GEx, three are managed for AeroMéxico, two
are published in a joint-venture with Hearst.
Source (News - Alert): Time Inc. IR
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