Private equity firms Atlantic Ridge Capital and Grafine Partners have agreed to acquire Paragon Films for roughly $900m.

The seller is Rhône, a private equity group that gained ownership of Paragon in December 2021. 

The deal will be led by Atlantic Ridge, who will collaborate with current leadership on growth of the packaging manufacturer.

Completion is scheduled in the fourth quarter of 2026.

Paragon, set up in 1988 and based in Broken Arrow, Oklahoma, makes stretch and shrink films for various industries like food and beverage, retail, and e-commerce.

Its line-up features Beyond, a thin-gauge machine film made from post-consumer recycled content.

The company added shrink films to its portfolio with the acquisition of Mexico-headquartered Xpack Films last year.

Grafine founder and managing partner Elizabeth Weymouth: "Our underwriting gave us strong conviction in Paragon's business and long-term growth potential.

“The Company has many of the characteristics we look for in an investment: a differentiated competitive position, durable demand, strong fundamentals and multiple avenues for value creation."

Grafine described the latest deal as an “important milestone” in its ties with Atlantic Ridge.

The company participated as an early institutional partner and investor in the debut fund raised by Atlantic Ridge.

Atlantic Ridge founder and managing partner Eytan Tigay said: "Paragon has built a differentiated business through a relentless focus on product performance, innovation and its customers.

"We see significant opportunity to build on that foundation and are excited to partner with Grafine on this investment. Grafine has been a strategic partner since our inception, and its investment expertise, capital and long-term perspective have been instrumental in bringing this transaction together."