TC Transcontinental has sold its industrial packaging business to Hood Packaging Corp. in a $95 million deal.
In a news release, officials with TC in Montreal said the business being sold had sales of around $50 million in the year ended July 28. They added TC will use proceeds from the sale to continue reducing its debt.
"Industrial packaging is a solid business," President and CEO Thomas Morin said. "However, after operating it for several years, we concluded that it offers few synergies with the rest of our portfolio."
He added that TC "is pleased for our employees that Hood Packaging, a family-controlled company like TC, whose industrial packaging business is core to their activities, is the buyer."
The deal includes TC's packaging operations and building in Thomasville, N.C., which employs 138, as well as the firm's plant in Ontario, Calif. TC is a flexible packaging leader that posted sales of $2.9 billion in the fiscal year ended Oct. 29, 2023.
TC's TC Transcontinental Packaging unit — based in Chicago — operates more than two dozen manufacturing facilities in the U.S., Canada, Mexico, Ecuador, Colombia, the United Kingdom and New Zealand. Its products include extrusion, lamination printing, converting and recycling. The firm is No. 24 in Plastics News' ranking of top North American film and sheet manufacturers.
In late 2023, TC announced the closing of its 89-employee flexible plastics packaging plant in Tomah, Wis. Officials at the time said work from that plant would be transferred to other facilities in the U.S.
Hood opened in 1978 as Southern Bag Corp. Today, the Madison, Miss.-based firm operates 22 plants across North America making plastic film and bags, woven polypropylene bags, coated and laminated materials and paper packaging.
Hood ranked 43rd in the PN film and sheet ranking with annual sales of $220 million.