SP NEWSPRINT CO. TO CONDUCT STRATEGIC REVIEW
Newsprint company owned by affiliates of Cox Enterprises, Inc., Media General, Inc. and The McClatchy Company to explore strategic alternatives to maximize value
ATLANTA – May 17, 2007 – SP Newsprint Co. (“SP”), a privately held producer of newsprint, owned in an equal, general partnership by affiliates of Cox Enterprises, Inc., Media General, Inc. and The McClatchy Company, announced today that it has engaged TD Securities (USA) LLC to explore strategic alternatives to maximize value and position the company for continued long-term success. SP, working in consultation with its financial advisors and owners, will consider a range of options, including the potential sale of the company and SP Recycling Corp., its wholly owned recycling subsidiary.
“While we have delivered strong returns for our owners over time, the newsprint marketplace is evolving. We must align the business to capitalize on these changes as well as new opportunities,” said Joseph R. Gorman, president and chief executive officer of SP Newsprint Co. “The decision to explore various scenarios, including new ownership, will ensure that the company is better able to compete in a newsprint marketplace that is experiencing significant restructuring activity.”
SP is the second-largest producer of 100 percent recycled newsprint and the fifth-largest newsprint producer in North America, with 2006 consolidated sales of $638 million. The company provides newsprint to its owners as well as to other newspapers, primarily in southeastern and western states. In addition to its two newsprint mills in North America, the company also owns and operates a fiber procurement subsidiary, which is the dedicated recycling operation for the newsprint enterprise.
With respect to the review process, SP will not make further public comments until the company has completed an analysis of strategic alternatives and a definitive transaction is approved.
About SP Newsprint Co.
SP Newsprint Co. (SP) is a general partnership among affiliates of Cox Enterprises, Inc., Media General, Inc. and The McClatchy Company. Headquartered in Atlanta, Georgia, the company operates newsprint mills in Dublin, Georgia, and Newberg, Oregon as well as SP Recycling Corp, a wholly owned fiber procurement subsidiary with facilities primarily in the Southeast and Western portions of the United States. Annual newsprint production totals approximately one million tons.
Cindy Leggett-Flynn / Christina Stenson