Time Inc. sells Grupo Expansión to Southern Cross Group, a Latin-American PE firm
MEXICO CITY/NEW YORK, June 26, 2014 – 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.