Time Inc. Sells Its Mexican Publishing Subsidiary
Grupo ExpansiÃ³n picked up by private equity firm Southern Cross.
Time Inc. has sold Mexico City-based Grupo ExpansiÃ³n to Latin American private equity firm Southern Cross Group. Time Inc. made Grupo a subsidiary when it purchased the publisher, Mexico's second-largest, in 2005.
Terms of the deal were not disclosed, but Grupo ExpansiÃ³n (GEx) publishes 16 titles and 10 websites and represented less than two percent of Time Inc.'s revenues in 2013.
"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., in a statement. "Therefore, we believe GEx will have better opportunity to maximize its value under the ownership of Southern Cross."
Going forward, Grupo ExpansiÃ³n will license Time Inc. and Time Warner brands including CNNMÃ©xico, InStyle and Travel + Leisure.
In 2005, reports estimated the sale price of Grupo ExpansiÃ³n at about $60 million. The company was making about $50 million in ad revenues.
At the time, Ann Moore was Time Inc.'s chairman and CEO. "Given the outstanding success that British publisher IPC (which we acquired in 2001) has enjoyed in the U.K. and Australia, we are confident in furthering our international expansion by acquiring GEE," said Moore in a statement announcing that acquisition.