SP Newsprint Co. said that it is evaluating the the future of the company and has hired TD Securities (USA) to explore "strategic alternatives," which could include the possible 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," Gorman added.
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.
Privately held SP Newsprint Co. is owned in an equal, general partnership by affiliates of Cox Enterprises, Inc., Media General, Inc. and The McClatchy Company.
SOURCE: SP Newsprint Co.