Hearst Corporation is to purchase an additional 30 percent interest in global ratings agency Fitch Group from Fimalac S.A., bringing Hearst’s equity interest to 80 percent. Fimalac will retain a 20 percent equity interest in Fitch Group. The transaction is valued at $1.965 billion.
Hearst acquired its original interest in Fitch Group in March 2006 and had most recently held 50 percent of the company. The transaction is expected to close in the first quarter of 2015 following receipt of all necessary regulatory approvals.
“We believe the credit rating, financial information and risk management services Fitch provides to the global financial community are critical in today’s economy,” said Steven R. Swartz, president and CEO of Hearst Corporation. “Strategically, Hearst continues to diversify into data and information-based companies while growing its world-class media assets. We are excited to continue to work with Fimalac and Marc Ladreit de Lacharrière to make Fitch Group an even bigger success.”
“Since the beginning of our relationship with Fitch, it has seemed to me that the company fits perfectly into the profile of businesses in which Hearst should seek to expand,” said Frank A. Bennack, Jr., former Hearst CEO and current executive vice chairman of Hearst Corporation. “The record of advances in the business over that period shows that excellent management is in place, our partners at Fimalac are aligned with us in strategy for the future and the diversification from our highly-valued traditional portfolio is proving to be rewarding. Stepping up from 50 percent to 80 percent makes great sense and we’re all excited.”
USA, New York
Related articles:
- Hearst Magazines UK sells Coast Magazine and transfers Psychologies licence to Kelsey Publishing Posted on May 29, 2012
- Immediate Media acquires You & Your Wedding and Prima Baby from Hearst Magazines UK Posted on January 12, 2012
- Hearst Corporation completes the acquisition of the majority of Hachette China operations Posted onDecember 6, 2011
- Kaboodle to merge With StyleSpot Posted on October 3, 2011
- Hearst Magazines UK announces its senior team Posted on September 23, 2011
- Hearst Corporation completes UK portion of Lagardère Global Acquisition Posted on August 6, 2011
- Hearst completes U.S. portion and majority of its overall acquisition of Lagardere’s international magazine business Posted on June 1, 2011
- Lagardere and Hearst sign the share purchase agreement for the sale of Lagardere’s international magazine business Posted on March 29, 2011
- Negotiations for Hearst’s Acquisition of Lagardere’s International Press and Magazine Business confirmed Posted onJanuary 5, 2011
- Lagardère may sell its portfolio of international titles either Hearst Corp or Bauer Media Group Posted on December 21, 2010
- Hearst Corporation acquires iCrossing Posted on June 6, 2010
Fusion Corporate Partners 
You must be logged in to post a comment.