Journal Register Company Exploring Sale of Massachusetts and Rhode Island Newspapers
YARDLEY, PA, August 28, 2006 - Journal Register Company today announced that it is exploring the possible sale of its properties in its New England cluster. The company has engaged Dirks, Van Essen & Murray as its financial advisor.
The properties that would be included in the sale are the Herald News and Taunton Daily Gazette in Fall River and Taunton, MA, respectively, and the Call, the Times and Kent County Daily Times in Woonsocket, Pawtucket and West Warwick, RI, respectively, and its weekly group, the Southern Rhode Island Newspaper Group in Wakefield, RI.
Journal Register Company chairman and CEO Robert M. Jelenic stated, "Although we are continuing to operate our business well despite an extremely challenging period in today's complex newspaper environment, we must continuously consider how best to deploy our resources. In that regard, we are evaluating a strategic divestiture of our New England cluster and focusing our efforts on those operations, including our growing online operations, which generate a higher return on capital and produce a higher level of profitability and cash flow."
There cam be no assurance that any transaction will occur, or, if undertaken, the terms or timing of such a transaction. The properties being considered for sale generated revenues of approximately $39.9 million and produced operating cash flow of approximately $8.9 million for the twelve months ended June 25, 2006.
Journal Register Company is a leading US newspaper publishing company. Journal Register Company owns 27 daily newspapers and 366 non-daily publications. Journal Register Company currently operates 222 individual websites that are affiliated with the company’s daily newspapers, non-daily publications and its recently acquired network of employment websites. These websites can be accessed at www. journalregister.com. All of the company's operations are strategically clustered in seven geographic areas: Greater Philadelphia; Michigan; Connecticut; Greater Cleveland; New England; and the Capital-Saratoga and Mid-Hudson regions of New York. The company owns JobsInThe US, a network of seven premier employment websites in the Northeast.