Sandton assumes assets of The Free Lance-Star
Sandton Capital Partners has closed on its $30.2 million purchase of The Free Lance-Star Publishing Co. (Fredericksburg, Va.) and installed veteran newspaperman Gene M. Carr as interim publisher and chief executive officer.
The sale ended the Rowe family's 130-year tenure as owners of the media company. But Sandton said it would continue "business as usual" in operating the newspaper, radio stations, websites and commercial printing plant.
Sandton purchased a loan from BB&T last summer that had been made to the FLS in 2007 to build Print Innovators, a commercial printing plant on Belman Road in Fredericksburg. The outstanding balance was about $38 million.
The FLS then filed for Chapter 11 bankruptcy, and Sandton was the winning bidder in a May 15 auction. The firm was allowed to submit a credit bid of $13.9 million and added $16.3 million in cash to top other bidders.
As part of the purchase agreement, Sandton offered employment to all current FLS employees last week. The FLS' publications, websites, radio stations and commercial printing plant will continue to operate without interruption.
To lead the transition, Sandton announced the hiring of Carr, who had been involved with the FLS as an adviser and consultant last year.
Carr has more than 30 years of media experience and has served as CEO of several groups. He spent nine years with ACN, a media conglomerate with more than 100 titles operating in five states, including Virginia.
Most recently, Carr has been a consultant specializing in community media businesses. He has served as the interim southwest region vice president of Freedom Communications and publisher of the McAllen Monitor and Colorado Springs Gazette.
Keywords
Fredericksburg, Carr, Rowe, Sandton Capital Partners
