MEXICO CITY & NEW YORK--(BUSINESS WIRE)--Southern Cross Group, a Latin-American private equity firm, and media company Time Inc. 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, Mexico.
“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 revenues.
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 Cross 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 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, 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: Time Inc. IR