09:03 AM EDT, 10/28/2024 (MT Newswires) -- TC Transcontinental (TSX: TCL.A TCL.B) announced Monday the sale of its industrial packaging operations to Hood Packaging Corporation for a price of US$95 million (about C$132 million) subject to working capital adjustments.

A statement noted these operations generated approximately US$50 million (C$68 million) in revenues during the last 12 months ended July 28, 2024. The corporation anticipates using the net proceeds to continue reducing net debt in line with its business priorities. It said 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. "

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.