The latest food and beverage industry news and trend analysis

Kingswood Capital Management, a private equity firm specialising in operational improvements, has entered into a definitive agreement to acquire the paper-based packaging division of Coveris. The transaction serves as a complex corporate carve-out that will see the unit separate from its parent group and rebrand immediately as Paragon Print and Packaging.

The deal underscores the continued private equity appetite for sustainable material assets, as investors look to capitalise on the regulatory and consumer shift away from plastics toward fibre-based solutions.

The Return of Paragon: Operational Scale

Upon completion, the standalone business will revert to its historic name, Paragon Print and Packaging, a brand established in 1994 that carries significant legacy recognition in the UK and continental Europe.

Key Business Metrics for Paragon:

• Portfolio: High-quality, sustainable paper-based solutions for food, household, and personal care.

• Specialisation: Self-adhesive and linerless labels, lined board, cartons, and trays using eco-friendly materials.

• Leadership: Jo Ormrod, the current Chief Operating Officer, will be appointed as Chief Executive Officer of the newly independent Paragon entity. The existing management team will remain in place.

"We are excited about our next chapter with Kingswood," said Jo Ormrod. "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."

A Streak of Complex Carve-Outs

For Kingswood, this acquisition fits a specific investment thesis focused on complex corporate carve-outs of market-leading businesses. This deal marks the latest in a rapid series of similar high-profile transactions for the firm over the last two years:

• RAVE Aerospace: Acquired just this month from Safran (formerly Safran Passenger Innovations).

• Daramic: A global manufacturer of battery separators acquired from Asahi Kasei.

• Kodak Alaris: Acquired from the UK Pension Protection Fund.

Alex Wolf, Founder and Managing Partner at Kingswood, commented: "Paragon has an enduring legacy as a trusted provider of sustainably produced solutions. We’re looking forward to supporting Jo and the rest of the leadership team as they join the Kingswood portfolio and embark on the next chapter as a standalone company."

Strategic Divergence

For Coveris, the sale allows for a sharpened focus on its core competency: flexible plastics. Andrew Kovach, Managing Director at Kingswood, noted that Paragon's strong market position and product lineup offered "tremendous opportunities for growth" as global companies seek sustainable alternatives.

Transaction Details

The deal is expected to close in several weeks, subject to customary legal and regulatory requirements.

• Financial Advisor: Jefferies served as the exclusive financial advisor to Kingswood.

• Legal Counsel: Kirkland & Ellis LLP provided legal counsel.