The deal for its “Business Unit Paper” subsidiary was signed in January 2026 and remains subject to customary completion undertakings. It is expected to close within the first quarter of 2026.
Following completion, the business will operate as a stand-alone entity under its former name, Paragon Print and Packaging.
Jo Ormrod, current Chief Operating Officer, will take on the role of Chief Executive Officer, with the existing management team remaining in place.
Commenting on the acquisition, Ormrod said: Commenting on the acquisition, Jo Ormrod said: “We are excited about our next chapter with Kingswood. 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 Print and Packaging
Paragon produces paper-based packaging solutions for end markets such as food, household, and personal care.
The company, which was established in 1994, creates products like self-adhesive and linerless labels, lined board, cartons and trays.
Andrew Kovach, Managing Director at Kingswood, explained the decision to acquire to business: “We were impressed with Paragon’s market position, strong product lineup, and exceptional business leadership.
“The Paragon brand has strong recognition across the UK and continental Europe for reliability and excellence, and as companies around the world seek more sustainable packaging solutions, we see tremendous opportunities for growth for the company.”
‘Well positioned for continued growth’
Coveris said the move reflects a strategic decision to focus on its core flexible packaging operations across the EMEA region.
Christian Kolarik, Chief Executive Officer of Coveris, added: “Since its establishment in 2020, the Paper Business Unit has been consistently and successfully developed.
“We are proud about 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.”
Upon completion of the transaction, Coveris will consist of 17 flexible manufacturing facilities across EMEA and the UK, generating sales of around £523 million (€600 million) and employing approximately 2,500 people.
Paragon Print and Packaging will operate separately with annual sales of around £235 million (€270 million) and a workforce of 1,400 employees.
Paper recycling operations
The divestment follows recent developments within Coveris’ paper recycling activities, including the expansion of its ReCover Paper division.
ReCover Paper, formerly operating as Environmental Services, was integrated into the wider ReCover recycling platform.
The division processes around 10,000 tonnes of waste annually, managing material from Coveris’ UK label and cartonboard manufacturing sites while also overseeing recycling partnerships across the company’s supply chain.
The business said these initiatives form part of its broader sustainability strategy, as it continues to strengthen recycling infrastructure alongside its remaining flexible packaging operations.
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