Cox aims to divest Valpak, some newspapers
Cox Enterprises Inc., the media conglomerate that owns the Cox Communications cable company, intends to sell direct mail advertiser Valpak and all but three of its newspaper titles.
“This decision was made as part of an ongoing strategic review of our portfolio and enables us to maintain our strong and stable financial performance by further paying down debt,” said Jim Kennedy, chairman and CEO of Cox Enterprises, in a statement.
Approximately 80% of Cox Enterprises' revenues now come from sources other than its traditional advertising-supported media companies, according to the company.
Valpak, a coupon distributor, is based in Largo, FL. The company recently opened up a $200 million, 460,000-square foot manufacturing facility in St. Petersburg, FL, to house about 500 employees. Cox purchased Valpak in 1991.
Goldman Sachs will assist with marketing Valpak and release information for prospective buyers in September.
“Since becoming a Cox company in 1991, Valpak has become an industry leader and a brand that consumers around the country know and trust. Its new state-of-the-art production facility will allow Valpak to offer advertisers even more effective and targeted tools to reach their customers,” Kennedy added in the statement.
The company said it plans to keep its biggest paper, The Atlanta Journal-Constitution, as well as The Palm Beach Post and the Dayton Daily News.