Montréal, Quebec based TC Transcontinental announced the sale of its industrial packaging operations to Hood Packaging Corporation for $95 million subject to working capital adjustments. These operations generated approximately $50 million in revenues during the last twelve months ending July 28. The corporation anticipates using the net proceeds to continue reducing net debt in line with its business priorities. This will increase its flexibility in capital allocation, including targeted acquisitions in growth segments.
“Industrial packaging is a solid business. However, after operating it for several years, we concluded that it offers few synergies with the rest of our portfolio and is not core to our packaging sector’s growth strategy,” said Thomas Morin, President and Chief Executive Officer of TC Transcontinental.
“We are pleased for our employees that Hood Packaging, a family-controlled company like TC Transcontinental whose industrial packaging business is core to their activities, is the buyer.”
Hood Packaging is acquiring TC Transcontinental’s Thomasville, North Carolina, packaging operations and building, and 138 employees are being transferred. Hood Packaging is also acquiring the industrial packaging business of TC Transcontinental’s Ontario, California plant, which represents approximately 15 percent of this plant’s revenues.
“We sincerely thank all of our talented employees for their contribution, commitment and performance,” said Roop Nangia, Senior Vice President, Consumer & Beverage, TC Transcontinental Packaging.
Hood Packaging operates 23 production facilities in the US and Canada. The company also acquired TC Transcontinental’s multiwall operations in 2020.
