TC Transcontinental's $2.1B Pivot: A Bold Bet on Print's Revival

MONTREAL, QC – December 08, 2025 – In one of the most significant strategic pivots in recent Canadian corporate history, Transcontinental Inc. today announced a definitive agreement to sell its entire Packaging Sector to global packaging leader ProAmpac Holdings Inc. for approximately $2.10 billion CAD. The deal not only reshapes two major industry players but also signals a deliberate and high-stakes reinvention for TC Transcontinental as it approaches its 50th anniversary.

The transaction, which implies an enterprise value of $2.22 billion, will see the Montreal-based company divest a division that accounted for 58% of its 2024 revenue. In return, TC Transcontinental plans a massive cash distribution to its shareholders of approximately $20.00 per share, a move designed to deliver immediate and substantial value from a business it has spent the last decade building.

A Deliberate Reinvention

For TC Transcontinental, this sale is far more than a simple divestiture; it's a fundamental reshaping of its corporate identity. The company, which began as a printer in 1976, is shedding its largest and most modern division to double down on its foundational businesses: Retail Services & Printing and Educational Publishing.

“As we approach our 50th anniversary, TC Transcontinental is once again reinventing itself,” stated Isabelle Marcoux, Executive Chair of the Board. “This transaction delivers immediate and significant value to our shareholders... The new TC Transcontinental will be a strong Canadian company, with its head office in Montreal, fully committed to growing its presence in Canada — both organically and through acquisitions.”

This strategic refocus is not a retreat but a calculated advance into markets where the company sees renewed potential. In recent quarters, TC Transcontinental has been quietly laying the groundwork for this pivot. The company’s printing sector has seen revenues and profitability climb, driven significantly by a resurgence in book printing. In anticipation of this, the company has invested over $10 million in its Transcontinental Interglobe plant in Québec, adding robotics and modernizing color systems to boost efficiency and meet North American demand.

Furthermore, TC has been actively expanding its in-store marketing (ISM) capabilities, a segment it identifies as having attractive growth potential. Recent acquisitions, including the Middleton Group in June 2025 and Canva Group in August 2025, were targeted moves to accelerate growth in this niche. On the publishing side, its 2022 acquisition of ERPI from Pearson solidified its position as Canada's leading French-language educational publisher, an area it intends to continue growing. This sale provides the capital and focus to supercharge these initiatives.

ProAmpac’s Transformative Power Play

While TC Transcontinental slims down to focus, ProAmpac is bulking up to dominate. For the Cincinnati-based packaging giant, this acquisition is the latest and largest in an aggressive campaign of strategic expansion. The deal is being hailed by its leadership as a "transformative milestone."

“This acquisition is a transformative milestone for ProAmpac and TC Transcontinental Packaging,” said Greg Tucker, Founder, Vice Chairman, and CEO of ProAmpac. “Through TC Transcontinental Packaging, ProAmpac is broadening its end-market focus to include protein, dairy, and medical segments, and expanding its geographic presence.”

The move dramatically enhances ProAmpac's scale and capabilities. It follows a string of high-profile acquisitions, including PAC Worldwide in August 2025 to bolster its e-commerce offerings, and International Paper’s bag converting operations in October 2025 to strengthen its paper-based solutions. The addition of TC Transcontinental's assets—which generated $1.6 billion in revenue in the last twelve months—provides ProAmpac with a significant manufacturing footprint in Canada, the U.S., Latin America, the U.K., and New Zealand.

This consolidation is happening within a booming global flexible packaging market, projected to grow from roughly $270 billion in 2025 to over $400 billion by 2032. With trends favoring sustainable, convenient, and e-commerce-friendly packaging, scale and innovation are paramount. By integrating TC Transcontinental's expertise and customer base, ProAmpac solidifies its position as a top-tier competitor, better equipped to serve a diverse range of global clients demanding increasingly sophisticated solutions.

The Deal's Mechanics and Market Reception

The financial structure of the deal underscores the value TC Transcontinental managed to unlock. The sale price represents an acquisition multiple of approximately 8.7 times the Packaging Sector's adjusted operating earnings, a compelling valuation that analysts will likely view favorably.

For shareholders, the transaction is a clear windfall. The planned $20.00 per share distribution provides a direct and significant cash return. Shareholder approval, which requires a two-thirds majority, appears to be a formality. The corporation’s largest shareholder, Capinabel Inc., which controls nearly 66% of the voting power, has already entered into a voting agreement to support the deal.

Prior to the announcement, Wall Street analysts already held a "Strong Buy" consensus on TC Transcontinental's stock, with many noting it was "very undervalued with a flawless balance sheet." This divestiture acts as a powerful catalyst, crystallizing the value of the packaging assets that the market may have been discounting within the diversified conglomerate structure. The move allows investors to benefit from the high valuation of the packaging sector while participating in the future of a more focused, streamlined company with a deleveraged balance sheet and robust cash flow.

Navigating the Transition

The deal, expected to close in the first quarter of 2026, is now subject to customary regulatory approvals, including a likely review by Canada's Competition Bureau. Given the global operations of both entities, scrutiny from international bodies may also be required.

Central to the transition will be the integration of TC Transcontinental's approximately 7,600 packaging employees into ProAmpac. Both leadership teams have emphasized a shared cultural commitment to customer service, safety, and innovation. “Our packaging colleagues will be joining a flexible packaging industry leader with an entrepreneurial culture,” noted Thomas Morin, President and CEO of TC Transcontinental, expressing confidence in the fit.

Ultimately, this transaction represents a fascinating strategic divergence. One company, ProAmpac, is betting on scale and consolidation to win in a high-growth global market. The other, TC Transcontinental, is making a bold choice to return to its roots, betting that focused investment in its printing and publishing businesses will create more long-term value than continuing as a diversified giant. It is a defining moment that will be watched closely by investors and competitors across multiple industries.