Transcontinental closes sale of packaging business

Executive Summary

• TC Transcontinental completed the sale of its packaging business to ProAmpac Holdings Inc. for cash proceeds of $2.1 billion.
• The company will distribute approximately $20 per share to shareholders via a capital reduction and a cash dividend, pending shareholder approval.
• Proceeds enable TC Transcontinental to refocus on its core retail services, printing, and educational publishing businesses.

Key Details

• Sale price: $2.1 billion CAD (converted at $1.37 CAD = $1 USD).
• Transaction closed on March 6, 2026; previously announced.
• Distribution to shareholders:
• Approx. $20 per share total.
• Consists of a $7 per Class A share capital reduction (subject to shareholder approval) and the balance as a cash dividend.
• Information on the distribution will be provided on March 10, 2026, after Q1 FY 2026 results and the annual/special shareholders’ meeting.
• Post‑sale financial snapshot:
• Revenues from continuing operations (FY ended Oct 26, 2025): $1.1 billion.
• Discontinued packaging operations previously generated $1.6 billion in revenue for the same fiscal year.
• Management comment: Isabelle Marcoux, Executive Chair, highlighted the sale as a “key milestone” and emphasized refocusing resources on core businesses.

Notable Quotes

“The closing of the sale of our packaging business represents a key milestone for TC Transcontinental,” said Isabelle Marcoux, executive chair of the board. “This transaction will allow us to focus our resources on our retail services and printing and educational publishing activities.”