European packaging manufacturer Coveris has signed an agreement to sell its paper and labels business to the American investment fund Kingswood Capital Management. The transaction, announced for early 2026, will modify the industrial scope of the 900 million euro sales group and give legal autonomy to Paragon Print and Packaging.
On completion of the sale, scheduled for the first quarter of 2026, the paper business will operate as an independent entity under its former name of Paragon Print and Packaging. This structure brings together cardboard and label manufacturing activities.
Christian Kolarik, CEO of Coveris, comments: "Since its creation in 2020, the Paper division has enjoyed steady and successful development. We are proud of the performance achieved and its current level of maturity, which led Sun Capital and management to jointly decide to divest this business, allowing us to strategically refocus on the core flexible packaging activities in EMEA."
Paragon Print and Packaging, now set to become an independent entity once again, was founded in 1994. The company was one of five acquired by Sun Capital in 2013 to form Exopack Holdings, which in the same year became Coveris.
On completion of the transaction, the group will have 17 industrial sites, sales of 600 million euros and around 2,500 employees. In France, Coveris has three sites, all specializing in flexible packaging.
For its part, Paragon Print and Packaging, which operates mainly in the UK, will post sales of 270 million euros and 1,400 employees. Coveris states that it considers that the paper business has the necessary foundations to continue its development under its new capital structure.
