TC Transcontinental is selling its Thomasville plant to Hood Packaging Corporation, which is taking on the 138 employees and is a corporate cousin of companies with operations in central North Carolina.
TC Transcontinental said the price was $95 million for its industrial packaging business, subject to working capital adjustments. It includes the operations and real estate. Hood Packaging is also acquiring the industrial packaging business of TC Transcontinental’s Ontario, California, plant, which represents approximately 15% of that plant’s revenues.
The Montreal-based packaging and printing conglomerate said it is exiting the industrial packaging business and will use the proceeds to reduce debt to better enable it to grow in other sectors.
“Industrial packaging is a solid business. However, after operating it for several years, we concluded that it offers few synergies with the rest of our portfolio, and is not core to our Packaging Sector’s growth strategy,” President and CEO Thomas Morin said in a press release announcing the sale Monday.
“We are pleased for our employees that Hood Packaging, a family-controlled company like TC Transcontinental whose industrial packaging business is core to their activities, is the buyer.”
Hood Packaging has 22 plants in the United States and Canada making plastic film and bags, woven polypropylene bags, coated and laminated materials, and paper packaging. It lists a North Carolina facility in Hamlet in Rockingham County south of Pinehurst.
Headquartered in Madison, Mississippi, it is a subsidiary of Hood Companies Inc., of Hattiesburg, Mississippi. A related company is Hood Distribution, which deals in millwork, moulding, siding, and related products. Hood Distribution has a High Point-area operation known as McEwen Lumber Company.
TC Transcontinental’s packaging sector has about 3,800 employees across 27 plants in the United States, Canada, Latin America and the United Kingdom, according to its 2023 annual report.
The sector makes extrusion, printing, lamination and converting products in rollstock, labels, die cut lids, shrink films, bags and pouches and advanced coatings for markets such as dairy, coffee, meat and poultry, pet food, agriculture, beverage, home and personal care products, industrial, consumer and medical products.
The company also printing and publishing divisions.
The Thomasville plant, about 111,000 square feet at 1308 Blair Street, was bought in December 2021 by Transcontinental TVL LLC for $3.9 million from the FSK Family Limited Partnership of Thomasville, according to Davidson County property records.