By: E&P Staff
One of the country’s largest newsprint producers might be on the block. The privately held SP Newsprint Co., jointly owned by Cox Enterprises, Media General, and The McClatchy Co., said today it retained TD Securities to “explore strategic alternatives to maximize value and position the company for continued long-term success.”
The Atlanta-based company said those options could include the sale of the company and its wholly-owned recycling subsidiary, SP Recycling Corp.
“While we have delivered strong returns for our owners over time, the newsprint marketplace is evolving,” Joseph Gorman, president and CEO of SP Newsprint, said in a statement.
“We must align the business to capitalize on these changes as well as new opportunities. The decision to explore various scenarios, including new ownership, will ensure the company is better able to compete in a newsprint marketplace that is experiencing significant restructuring activity.”
SP Newsprint is the second-largest producer of 100% recycled newsprint and the fifth-largest newsprint producer in North America. In 2006, the company reported consolidated sales of $638 million. SP provides newsprint to its owners as well as to other newspapers mostly in the southeastern and western regions.