“Over the past five years, Cerberus has worked intensively with YP to manage its print directories business while transforming the company into a leading independent local digital marketing solutions provider in the U.S.,” said Steven F. Mayer, Co-Head of Global Private Equity and Senior Managing Director of Cerberus. “Cerberus’ proprietary operations team and the talented management and employees of YP were instrumental to this transformation.”
Added Michael F. Sanford, Co-Head of North American Private Equity and Managing Director of Cerberus, “This successful exit, together with two recapitalizations, generated very strong returns for our investors. I would like personally to thank all those at YP who worked so hard to guide the company through this evolution, and would particularly like to express our gratitude to our partners at AT&T who have supported us throughout this process.”
This transaction combines two iconic companies to create the largest national provider of local marketing solutions. This will result in industry benefits including product innovation and a nationwide platform to allow small businesses to compete and connect with ready-to-buy consumers.
“Combining YP and Dex is a natural evolution of our business. DexYP™ will leverage the power of both of our brands, our presence, and our people to make a bigger, better entity,” said Jared Rowe, CEO of YP. “Working to help local businesses succeed has always been our mission and this combination will ensure we will continue to carry out that mission. This transaction also builds upon all the great work YP has collectively done over the last five years. On behalf of the entire management team, I want to thank Cerberus and AT&T for their partnership over the years and, most importantly, thanks to all of our YP employees for their tireless efforts to make our company better every day.”
Cerberus’ investment in YP began in 2012 when it acquired a majority stake in the original Yellow Pages print and digital business from AT&T, which retained a minority equity interest. Since then the business has rebranded to YP and evolved into one of the leading digital local marketing platforms in the U.S., with a massive audience of more than 60 million monthly unique visitors across its properties, while still printing over 1,000 traditional directories in 21 states. YP’s revenues in 2016 were approximately $1.6 billion.
Goldman Sachs served as financial advisor to YP, while Schulte Roth & Zabel LLP acted as legal counsel to YP. Moelis & Company served as financial advisor to Dex Media, while Weil, Gotshal & Manges LLP acted as lead legal counsel to Dex Media.
About Cerberus Capital Management, L.P.
Established in 1992, Cerberus Capital Management, L.P. is one of the world’s leading private investment firms. Cerberus has more than US $30 billion under management invested in three complementary strategies: private equity; global credit opportunities (which includes non-performing loans, corporate credit and distressed debt, mortgage securities and assets, and direct lending); and real estate. From its headquarters in New York City and network of affiliate and advisory offices in the U.S., Europe and Asia, Cerberus has the on-the-ground presence to invest in multiple asset classes globally.
Contact
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SOURCE Cerberus Capital Management, L.P.
