TC Transcontinental on Monday announced the sale of its industrial packaging operations to Hood Packaging Corporation for a price of US$95 million subject to working capital adjustments. These operations generated approximately US$50 million in revenues during the last twelve months ended July 28, 2024.
TC Transcontinental 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% of this plant’s revenues.
Roop Nangia, Senior Vice President, Consumer & Beverage, TC Transcontinental Packaging, added: “We sincerely thank all of our talented employees for their contribution, commitment and performance.”
TC Transcontinental is on Packaging Strategies‘ list of Top 25 Flexible Packaging Converters. Check out the current list here.
