Printer-Friendly Page

New York, July 25, 2001 Time Inc. has reached a definitive agreement to acquire IPC Group Limited, parent company of IPC Media, from Cinven, one of Europe's leading private equity firms, it was announced today. The purchase price is »1.15 billion (about $1.6 billion) including the cash in the company.

Cinven led the management buyout of IPC from Reed Elsevier plc in January 1998 for »860 million.

IPC is the United Kingdom's leading consumer magazine publisher with approximately 100 brands, selling 350 million magazines annually. It is focused on five core areas: Women; TV; Home & Garden; Leisure; and Men's Lifestyle & Entertainment. Its titles target a broad range of audiences and interests and include Britain's biggest-selling magazine What's on TV, plus TVTimes, Woman, Woman's Own, Marie Claire, Loaded, NME, Country Life and Horse & Hound.

IPC acquired Link House Media in 1998, adding over 30 brands to its portfolio, and has also launched a total of 12 new print and online brands, plus numerous brand extensions, since the buyout.

Don Logan, Chairman and CEO of Time Inc., said, "This is the perfect acquisition for AOL Time Warner because it accomplishes key strategic goals for the company. With some of the best known consumer publishing brands in Europe, IPC provides Time Inc. with an important presence within the European consumer publishing sector. This acquisition also furthers AOL Time Warner's goal of expanding our operations outside of the U.S."

"In addition to strengthening our magazine publishing business with a number of quality titles, IPC will provide us with valuable synergies with other AOL Time Warner brands. We look forward to working with IPC's management team in continuing to build this tremendous business," Mr. Logan added.

Brian Linden, director of Cinven said, "We are delighted to have worked closely with the management team of IPC in shaping a company with a focused product offering and a market-leading position. We're obviously pleased that, as a result of careful investment and management, IPC has now become such an attractive proposition to Time Inc., the world's leading publisher."

Michael Pepe, President and CEO of Time Inc. International, to whom IPC will report, said, "IPC represents a unique opportunity to establish Time Inc. as a major player in the international arena and provides an ideal platform for future growth."

Sly Bailey, CEO of IPC, said, "Cinven has played an important part in providing an environment in which IPC's management has been able to build the business. We now look forward to becoming part of the world's largest media company."

The closing of the transaction is conditional upon securing European Union regulatory clearances and other customary conditions.

Time Inc. is the world's preeminent magazine publisher. It is also a leading direct marketer of music and video products and a provider of content for the Internet. Time Inc. is wholly owned subsidiary of AOL Time Warner Inc., the world's first Internet-powered media and communications company, whose industry-leading businesses include interactive services, cable systems, publishing, music, networks and filmed entertainment.

Cinven is the leading private equity provider for larger European buyouts, having led transactions in excess of »10 billion since 1995.