SP Newsprint Co., 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, has engaged TD Securities (USA) LLC to explore strategic alternatives to maximize value and position the company for continued long-term success.
Some options being studied include selling the newsprint company, as well as its wholly owned subsidiary, SP Recycling Corp.
"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 Gorman, president and CEO 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. The company provides newsprint to its owners as well as to other newspapers, primarily in southeastern and western states. In addition to 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.
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