NEW YORK, N.Y. and WASHINGTON, D.C. -- Dow Jones &
Company and The Washington Post Company announced today that
they have each agreed to sell their 35% interests in Bear Island Paper
Company, L.P., a newsprint mill, and Bear Island Timberlands
Company, L.P., to Brant-Allen Industries, their partner in the
newsprint mill since 1978 and in the timberlands since 1985. All of the
facilities are located in Virginia, the newsprint mill near Richmond.
The agreement is subject to Brant-Allen obtaining financing. Terms
of the agreement were not disclosed.
As a result of the agreement, both The Post Co. and Dow Jones
are expected to record gains at the time of closing, which is expected
to take place before year end.
Peter Kann, chairman and chief executive officer of Dow Jones &
Company, said, "We invested in Bear Island to assure an adequate
supply of newsprint. With changes in aggregate demand having
lessened that concern, it makes sense for us to sell these valuable
assets and concentrate more fully on our core businesses."
Donald Graham, chairman and chief executive officer of The
Washington Post Company, said, "The Bear Island mill has been an
excellent plant. However the Brant-Allen offer is an attractive one.
The people at Bear Island have worked hard to make it an
outstanding mill. We're happy to continue as their customers."
Joseph Allen and Peter Brant, the principals of Brant-Allen, said,
"Our families have been in the newsprint business for over 56 years,
and we are grateful for this opportunity. We look forward to
continuing our relationship with the dedicated Bear Island employees
and with the Ashland community. We also expect to continue our
close relationship with Dow Jones & Company and The Washington
Post Company as Bear Island customers."
Dow Jones & Company                  The Washington Post Company
Richard Tofel                                    Guyon Knight