Universal Said to Weigh Sale of CD-Making Unit

Universal Music Group is exploring a sale of its CD manufacturing operation to a financial team led by veteran music distribution executive Jim Caparro, sources familiar with the talks said.

Any deal would probably be weeks away, the sources said. It would make Universal the third of the five major record corporations to exit the CD-making business in North America.

Time Warner Inc. last July sold its CD and DVD manufacturing business for about $1 billion to Canadian firm Cinram International Inc., which beat out a bid mounted by Caparro, who oversaw the manufacturing unit. Then in March, British music giant EMI Group closed its U.S. plant and said it struck a deal to have Cinram manufacture its discs.

Universal declined to comment. Caparro could not be reached.

Jeff Leeds