Coveris divests labels and board business to Kingswood Capital, refocuses on flexible packaging

UK – European packaging group Coveris has agreed to sell its labels and board division to US-based private equity firm Kingswood Capital Management for an undisclosed sum, marking a strategic shift toward its core flexible packaging operations.

The transaction, expected to close in the first quarter of 2026 subject to customary conditions, will see the unit relaunched under its historic name, Paragon Print and Packaging.

Following completion, Paragon will operate as an independent business with annual revenues of approximately €270m (US$321.2m) and a workforce of around 1,400 employees.

Coveris said the divestment will allow the group to sharpen its focus on its flexible packaging platform, which will comprise 17 manufacturing sites across EMEA and the UK, generating around €600m in annual sales and employing roughly 2,500 people.

Coveris CEO Christian Kolarik said the decision reflects the maturity and strong performance of the paper-based division since its formation in 2020.

“Since its establishment in 2020, the Paper Business Unit has been consistently and successfully developed,” said Kolarik.

“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 ownership structure, Jo Ormrod, currently chief operating officer of Coveris’ paper business unit, will assume the role of chief executive officer at Paragon. The existing management team will remain in place to ensure continuity.

“We are proud to return to our legacy name Paragon, a brand customers know and trust, going back over three decades,” said Ormrod.

“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 specializes in paper-based, recyclable packaging solutions for food, household and personal care sectors.

Its portfolio includes self-adhesive and linerless labels, lined board, cartons and trays produced using environmentally responsible materials.

The move comes amid broader portfolio reshaping across the packaging sector, as converters streamline operations and investors target growth in sustainable materials.

Coveris was formed in 2013 following Sun Capital Partners’ acquisition of five companies, including Paragon Print and Packaging, to create Exopack Holdings, later rebranded as Coveris.

Last month, Coveris underscored its innovation drive by redesigning Rowse Honey’s premium Manuka Honey packaging, integrating SourceTag radio frequency (RF) technology into back labels to enhance retail security while maintaining premium shelf appeal, highlighting its continued focus on value-added flexible and label solutions.

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