Consolidators take over Hispanic yellow pages industry
Hispanic Yellow Pages Network LLC (HYPN) recently completed acquisitions for a yellow pages directory that serves the Washington, D.C., Maryland and Northern Virginia markets. HYPN, which also has directories in the Dallas, Houston, Orlando, Tampa and Chicago markets, plans to build a national platform of yellow pages directories targeting Hispanic communities throughout the United States. HYPN is backed by a joint investment venture between ABRY Partners (Boston, MA) and yellow pages industry veterans Patrice Listfield and Luis Bermudez. Private equity investors, such as ABRY Partners, require an annual equity return of 30% per year for their investments.
Yellow pages networks enable consolidators to save on technology expenditures and paper purchases. Additionally, consolidators like HYPN, hope that wide geographic reach will attract national advertisers. Currently, national advertising accounts for 10% of HYPN's ad revenues. Peggy Koenig, partner at ABRY Partners, notes that the Hispanic yellow pages market is a very underserved vertical market. HYPN is not looking to expand into the Hispanic newspaper market, said Koenig.
Other players in the increasingly consolidated Hispanic yellow pages market, all of them backed by private equity houses, include Hispanic Yellow Pages of America (HYPA), backed by Hispania Capital Partners, which operates yellow pages directories in Colorado and Denver, and Cobalt Publishing backed by Cobalt Ventures. HYPA plans to acquire other Spanish-language yellow pages properties nationwide. It was recently looking at properties in Texas. Cobalt Publishing operates a number of Spanish-language yellow pages in Tennessee and other states in the South Eastern U.S. West Coast-based Rustic Canyon also has interests in Hispanic yellow pages.
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