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Transcontinental says it plans to use the net proceeds from the sale to reduce debt and pursue acquisitions.Pierre Charbonneau

TC Transcontinental has signed a deal to sell its paper and woven polypropylene packaging operations to Hood Packaging Corp. for about $239-million.

The company says it plans to use the net proceeds from the sale to reduce debt and pursue acquisitions.

Under the deal, Hood Packaging will acquire paper packaging operations and buildings in Iowa, Pennsylvania and Georgia.

The company will also acquire paper and woven polypropylene packaging operations in Spartanburg, S.C., however TC Transcontinental will keep the building and continue operating at the location, which also manufactures plastic flexible packaging.

About 415 employees are expected to transfer to Hood Packaging once the deal closes.

The transaction is subject to regulatory approvals and is expected to close in the first quarter of its 2020 financial year.

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