Transcontinental Sells Packaging Business for $2.1 Billion
Montreal, Monday, 8 December 2025.
Transcontinental Inc. sells its packaging sector to ProAmpac Holdings for $2.1 billion CAD, offering a cash distribution of $20 per share, marking a strategic refocus and shareholder value enhancement.
Strategic Shift for Transcontinental Inc.
Transcontinental Inc. (TSX: TCL.A, TCL.B) has announced a significant shift in its business strategy by entering into an agreement to sell its Packaging Sector to ProAmpac Holdings Inc. for approximately $2.1 billion CAD. This move aligns with the company’s plan to refocus its operations towards its core areas in Retail Services & Printing and Educational Publishing. The sale is anticipated to enhance shareholder value by providing a substantial cash distribution of approximately $20 per share [1].
Impact on Shareholder Value
The transaction is expected to deliver immediate and significant value to shareholders, with net proceeds representing a premium over the current market valuation of TC Transcontinental’s Packaging Business. Isabelle Marcoux, Executive Chair of the Board, expressed optimism about the move, highlighting the strategic reinvention of the company as it approaches its 50th anniversary [1]. The distribution of proceeds will be executed through a reduction of stated capital and a cash dividend, subject to shareholder and regulatory approvals [1].
Financial and Operational Implications
The agreement involves an enterprise value of approximately $2.22 billion CAD, which equates to 8.7 times the Packaging Sector’s last twelve months (LTM) adjusted operating earnings before depreciation and amortization, based on International Financial Reporting Standards (IFRS) [1]. The completion of this transaction is expected to reflect in a pro forma net indebtedness ratio of approximately 1.7 times post-transaction, showcasing a prudent approach to capital allocation and deleveraging [2].
Future Outlook and Strategic Focus
Looking forward, Transcontinental Inc. aims to advance in its Retail Services & Printing and Educational Publishing sectors, leveraging the proceeds from the sale to strengthen its positioning in these areas. The company’s decision underscores its commitment to transforming its business landscape to better adapt to current market demands and ensure long-term growth. This strategic pivot is anticipated to open new opportunities for innovation and expansion, as emphasized by company leadership [1][2].