TC Transcontinental’s paper and woven polypropylene packaging operations generated around $215m in revenues for fiscal 2019

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Image: Hood Packaging has agreed to acquire TC Transcontinental’s paper and woven polypropylene packaging operations. Photo: courtesy of Adam Radosavljevic from Pixabay.

Hood Packaging has signed an agreement to acquire TC Transcontinental’s paper and woven polypropylene packaging operations for $180m.

Under the deal, Hood Packaging is set to acquire TC Transcontinental’s paper packaging operations and buildings, including Transcontinental Sibley of Iowa, Transcontinental Hanford of California, Transcontinental Hazleton of Pennsylvania and Transcontinental Tifton of Georgia.

Hood Packaging will also acquire the paper and woven polypropylene packaging operations at the Transcontinental Spartanburg of South Carolina plant.

TC Transcontinental will own the building and continues to operate from this location, which also produces plastic flexible packaging.

TC Transcontinental president and CEO François Olivier said: “When we acquired Coveris Americas, we welcomed all of their assets and broad portfolio of products.

“After operating the paper business for almost 18 months, we concluded that it is less core to our Packaging Sector’s growth strategy. As such, our decision to sell these assets is aligned with our plan to continue building our flexible packaging platform where we see good growth potential.”

TC Transcontinental will transfer around 415 employees to Hood Packaging upon closing of the deal

As per terms of the agreement, around 415 employees from TC Transcontinental will be transferred to Hood Packaging upon completion of the deal.

The divested operations generated around $215m revenues in this fiscal year ended on 27 October.

Subject to regulatory approvals, the deal is expected to be completed in the first quarter of fiscal 2020.

TC Transcontinental Packaging president Thomas Morin said: “We know we can count on their professionalism to continue supporting our customers with dedication through this transition period, until the transaction is completed.”

Hood Packaging is a major North American firm involved in the manufacturing of plastic film and bags, woven polypropylene bags, coated and laminated materials, and paper packaging.

With head offices in Madison of Mississippi in the US and Burlington of Ontario in Canada, Hood Packaging employs around 2,000 people.

In September this year, TC Transcontinental has acquired a 60% stake in Industrial y Commercial Trilex (Trilex), an Ecuador-based plastic packaging supplier.