Rhône has agreed to sell Paragon Films to Atlantic Ridge Capital and Grafine Partners for about $900 million. Rhône acquired Paragon in December 2021. Since then, the company has expanded its US production capacity, accelerated its international growth and increased profits organically by more than 50 percent, while significantly expanding its margins.
In August 2025, Paragon completed its first acquisition, buying Mexico-based stretch and shrink film producer Xpack Films. The deal broadened its international presence and added shrink film to its product range.
"When we invested in Paragon, we saw a differentiated business with leading technology, a compelling customer value proposition, and significant growth potential," said Lucas Flynn, managing director and head of North America at Rhône. "Paragon is a stronger and more diversified business today."
Once completed, the sale will be the first realization from Rhône Fund VI, a 2022-vintage fund. According to Rhône, the transaction is expected to cap an active year for its flagship fund platform, which has included several cash distributions to investors. Founded in 1988, Paragon makes films that allow customers to contain loads using thinner-gauge material, serving thousands of end users in the food and beverage, consumer products, e-commerce, retail and industrial markets.
Under Rhône's ownership, Paragon developed thinner films and products containing post-consumer recycled resin, launched its Beyond machine film, which it describes as the industry's thinnest film, and built a new experience center in the US. The deal is expected to close in the fourth quarter of 2026. William Blair and UBS Investment Bank were financial advisers on the sale.
Source: PE Hub · Summarized by HeadlinesBriefing