Times Mirror to Sell Graphic Control Unit

Times Mirror said Friday that it has agreed to sell its Graphic Control subsidiary to members of the unit’s management together with Brentwood Associates, a private investment firm specializing in leveraged buyouts.

Times Mirror said it would receive $121 million in cash and $25 million in preferred stock in exchange for the capital stock of Graphic Control, a Buffalo, N.Y., maker of recording charts, marking systems, disposable medical products and coated imaging papers. Times Mirror would receive $80 million at the closing of the sale and the balance of cash over the next two years.

The sale is subject to approval by directors of Times Mirror, negotiation of a definitive agreement and regulatory approvals. Times Mirror, which publishes The Times and other newspapers, and Brentwood Associates are based in Los Angeles.

Separately, Times Mirror said it has filed with the Securities and Exchange Commission a so-called shelf offering of as much as $200 million in notes that may be issued from time to time. Proceeds will be used for general corporate purposes and the refunding of long-term debt and commercial paper.