Coveris recently announced that it has reached an agreement to sell its Paper business unit to Kingswood Capital Management. This transaction was finalized in January 2024 and is subject to customary closing conditions, with completion expected in the first quarter of 2026. The divested Paper business unit will operate as an independent entity under the name Paragon Print and Packaging.
Coveris is an international packaging company with operations spanning multiple areas including flexible packaging and paper-based packaging. Following the completion of this sale, Coveris's business will focus on its 17 flexible packaging manufacturing plants in the EMEA region (Europe, Middle East, and Africa) and the UK. The company expects annual sales to reach 600 million euros, with a total workforce of approximately 2,500 employees.
The divested Paper business unit will continue its development independently as Paragon Print and Packaging. This entity is projected to have annual sales of around 270 million euros and a workforce of approximately 1,400 employees. This spin-off will enable the paper business to continue expanding its printing and packaging operations under new ownership.
Christian Kolarik, CEO of Coveris, stated: "Since its establishment in 2020, the Paper business unit has demonstrated consistent and robust growth. We are pleased with the results achieved and the current level of development, which led Sun Capital and management to jointly decide to divest this business to focus more intently on our core EMEA flexible packaging operations. We believe the paper business is well-positioned for continued expansion under its new ownership structure."
This transaction reflects Coveris's strategic intent to adjust its business structure and concentrate on its core flexible packaging operations. By divesting the paper segment, Coveris aims to further optimize resource allocation and enhance its competitiveness in the flexible packaging field. Meanwhile, Paragon Print and Packaging, as an independent company, will continue to pursue growth opportunities in the paper-based printing and packaging market.
