Sandton Capital Partners has closed on its $30.2 million purchase of The Free Lance–Star Publishing Co. and installed veteran newspaperman Gene M. Carr as interim publisher and chief executive officer, according to fredericksburg.com.
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.
“We are excited to be part of the everyday life of these vibrant communities and we will continue to strive to be the best source for local news,” Tom Wood, a founding partner of Sandton, said in a prepared statement. “We believe that there is a bright future in community newspapers and the hyper-local digital approach to delivering news and information.”
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.
The FLS’ assets included WFLS, WVBX, WWUZ, WNTX.
To lead the transition, Sandton announced the hiring of Carr, who had been involved with the FLS as an adviser and consultant last year.
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