Business
Transcontinental Inc. enters into Agreement to Sell its Packaging Business
MONTREAL, Dec. 08, 2025 (GLOBE NEWSWIRE) -- Transcontinental Inc. (“TC Transcontinental&#x...
About this update from Transcontinental Inc. Class A
[{"type":"text","content":"Transcontinental Inc. enters into Agreement to Sell its Packaging Business\n\n\n\n MONTREAL, Dec. 08, 2025 (GLOBE NEWSWIRE) -- Transcontinental Inc. (“TC Transcontinental” or the “Corporation”) (TSX: TCL.A, TCL.B) today announced that it has entered into a stock purchase agreement (the “Stock Purchase Agreement”) with ProAmpac Holdings Inc. (“ProAmpac”) and certain of its subsidiaries (collectively, the “Buyer”), pursuant to which the Buyer has agreed to purchase all of the issued and outstanding shares of capital stock of entities which carry on the business of the Corporation’s Packaging Sector (“TC Transcontinental Packaging” or the “Packaging Business”) (the “Transaction”). The Transaction will result in the divestiture of the Corporation’s entire interest in the Packaging Sector. All amounts in this press release are in Canadian dollars, unless indicated otherwise.\n \n\n The aggregate purchase price payable to the Corporation, which implies an enterprise value of approximately $2.22 billion\n \n (\n \n\n 1)\n \n inclusive of assumed indebtedness and lease obligations under IFRS, is approximately $2.10 billion\n \n (\n \n\n 1)\n \n , subject to customary adjustments for debt and debt-like items, cash, and net working capital. The Corporation expects to make a cash distribution to its shareholders of approximately $20.00 per share on Class A Shares and Class B Shares (based on the Corporation’s current issued and outstanding Class A Shares and Class B Shares as of December 5, 2025).\n \n\n\n (1)\n \n Converted at an exchange rate of 1.38 CAD/USD.\n \n\n The Transaction is subject to shareholder approval, regulatory approvals and other customary conditions.\n \n\n\n Immediate Value Realization\n \n\n\n Based on the agreed consideration and anticipated net proceeds, the Transaction represents a compelling valuation for the Packaging Business and is expected to deliver a meaningful return to TC Transcontinental’s shareholders.\n \n\n “This transaction delivers immediate and significant value to our shareholders, with net proceeds representing a substantial premium to the value of the Packaging Business within TC Transcontinental’s share price. In this period of industry consol...