La Raza Gets Investment Capital.

Hispania Capital Partners announced its investment in Rossi Publications, Inc. (RPI), the publisher of La Raza. Under the new partnership, the name Rossi Publications, Inc., was changed to PrensAmerica Corp. The new entity will remain Hispanic owned and operated. The terms of the transaction were not disclosed.

Hispania’s investment will enable the 33-year old company to accelerate its ongoing expansion in Chicago’s suburban areas where the Hispanic population has grown by close to 70% over the past 10 years. Hispania will also assist the company in expanding the distribution of La Raza Paginas Amarillas; a rapidly growing Spanish-language telephone directory geared to Latino consumers in the greater Chicago area. Other acquisitions are being planned as the company has its sights on
expanding well beyond the Chicago market.

Carlos L. Signoret, a Partner at Hispania Capital Partners, commented, “Our investment will assist La Raza in maintaining market leadership in Chicago, as well as expanding its reach to other markets.”

Luis H. Rossi, former President and publisher of RPI, will remain a significant stakeholder and will serve as Vice-Chairman of the Board of Directors of PrensAmerica. Rossi will continue to play an integral part in the future development of the newspaper. Mr. Rossi explained, “Hispania shares our vision of expanding the company into new areas in order to better serve our community. Hispania’s financial support and market expertise will play a crucial role in our growth strategy, thus ensuring our leadership position as the premiere Hispanic publishing company in Chicago in the years to come.”

Robert J. Armband, CEO and Publisher of PrensAmerica, stated, “The investment is in-line with our strategy to strengthen and diversify our revenue base by facilitating the Chicago market expansion of La Raza and in providing capital for strategic U.S. Hispanic print acquisitions.” He also noted, “With all the recent activity in the Hispanic print arena, our industry may currently be the fastest growing and most rapidly consolidating media sector.”

Victor L. Maruri, a Partner at Hispania Capital Partners, noted, “As our first major investment since the Fund closed five months ago, La Raza meets practically all of our criteria which include attractive growth potential for our investors, a valuable product for our community and a significant financial commitment to inner city economic development.” Maruri further noted, “The fact that our first investment is in our home base of Chicago, makes it all the more exiting.”