Packaging group Coveris has agreed to sell its labels and board business to US-based private equity company Kingswood Capital Management for an undisclosed sum.
This will see the unit re-established under its historic Paragon Print and Packaging name.
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The deal is expected to be completed in the first quarter of 2026, contingent on the fulfilment of standard closing conditions.
Following completion, the former paper business unit will operate as an independent company, Paragon Print and Packaging, with annual sales of around €270m ($321.2m) and approximately 1,400 staff.
Coveris said that once the divestment is finalised, its remaining operations will comprise 17 flexible packaging manufacturing sites across EMEA and the UK, generating about €600m in sales and employing roughly 2,500 people.
Coveris CEO Christian Kolarik said: “Since its establishment in 2020, the Paper Business Unit has been consistently and successfully developed.
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By GlobalData“We are proud of the achieved performance and its current level of maturity led to the joint decision by Sun Capital and management to divest the business, allowing a clear strategic focus on core EMEA flexible packaging activities. We are confident that the Paper Business is well-positioned for continued growth under new ownership.”
Under the new structure, Jo Ormrod, currently chief operating officer for Coveris’ paper business unit, will become chief executive officer of Paragon.
The existing management team will continue in their roles.
Ormrod said: “We are proud to return to our legacy name Paragon, a brand customers know and trust, going back over three decades. I’m incredibly proud of what the team has built, and I’m looking forward to working with the entire Kingswood team as we grow as a standalone company while continuing to deliver the high-quality, sustainable solutions our customers have come to expect.”
Paragon focuses on paper-based, recyclable packaging for sectors, including food, household and personal care. Its portfolio includes self-adhesive and linerless labels, lined board, cartons and trays produced using environmentally friendly materials.
Paragon Print and Packaging was one of five companies acquired by Sun Capital Partners in 2013 to create Exopack Holdings, which was later rebranded as Coveris in the same year.
In December 2025, Coveris supplied fully recyclable, paper-based packaging for US confectionery products of UK-based snacking company pladis Global.
