Transcontinental closes sale of packaging business

Executive Summary

• TC Transcontinental Inc. has completed the sale of its packaging business to ProAmpac Holdings Inc. for total cash proceeds of $2.1 billion.
• The company plans to distribute approximately $20 per share to shareholders, structured as a $7 per share reduction in stated capital and a cash dividend for the remainder.
• The transaction allows TC Transcontinental to refocus its resources on retail services, printing, and educational publishing activities.

Key Details

• Transaction Completion: The sale of the packaging business to ProAmpac Holdings Inc. was completed on March 6, 2026.
• Consideration: Total cash proceeds of $2.1 billion (USD), converted at an exchange rate of $1.37 CAD to $1 USD.
• Shareholder Distribution Plan:
  • Total expected distribution: ~$20 per share.
  • Structure: (i) Reduction of stated capital of ~$7 per Class A share; (ii) Cash dividend for the balance.
  • Condition: Capital reduction is subject to shareholder approval.
  • Timeline: Further information to be provided on March 10, 2026, following the release of Q1 fiscal 2026 results and the annual/special shareholder meeting.
• Business Context:
  • Discontinued Operations (Packaging): Prior to the sale, the packaging sector was a North American leader in flexible packaging, employing approximately 3,600 people and generating $1.6 billion in revenue for the fiscal year ended Oct. 26, 2025.
  • Continuing Operations: Revenues from continuing operations were $1.1 billion for the fiscal year ended Oct. 26, 2025.
  • Strategic Focus: Post-transaction, the company will focus on retail marketing services, printing, and French-language educational publishing.

Notable Quotes

• "The closing of the sale of our packaging business represents a key milestone for TC Transcontinental... This transaction will allow us to focus our resources on our retail services and printing and educational publishing activities." — Isabelle Marcoux, Executive Chair of the Board