Coveris, one of the largest European manufacturers of flexible plastic and paper packaging, has announced that it has entered into an agreement to sell its labels and board business, referred to as the Paper Packaging Division, to US private equity company Kingswood Capital Management. According to the announcement, after the agreement is signed in January 2026, the transaction will be subject to customary closing conditions and is expected to be completed in the first quarter of 2026. Once the process is finalised, the former Paper Packaging Division will operate as an independent entity under its historical name Paragon Print and Packaging.
As the company emphasises, the carve-out of the paper business and its sale to a financial investor is intended to enable a clearer strategic focus by Coveris on its core flexible packaging activities in the EMEA region. At the same time, the new owner of the Paper Packaging Division is expected to provide the business with the capital backing needed for further growth in the labels and board segment. The value of the transaction and detailed terms were not disclosed, but it was indicated that the divested segment will continue its operations under the Paragon Print and Packaging brand after completion of the acquisition process.
Development of the Paper Packaging Division since 2020
The Paper Packaging Division of Coveris was carved out in 2020 and since then has operated as an organised business unit focused on paper and board packaging products, including labelling solutions. According to the information provided by the company, this unit has recorded systematic growth and improvement in operating performance in recent years, which contributed to the current owner's decision to divest it.
Commenting on the transaction, Christian Kolarik, CEO of Coveris, said: "Since its establishment in 2020, the Paper Packaging Division has grown consistently and successfully. We are proud of the results achieved, and their current level of maturity has led Sun Capital and the management team to jointly decide to divest it, which will allow a clear focus on the strategy regarding the core flexible packaging business in the EMEA region. We are confident that the Paper Packaging Division has good prospects for further development with the support of its new owner."
Focus on flexible packaging in the EMEA region
After completion of the sale of the Paper Packaging Division, Coveris's activities will be focused exclusively on the flexible packaging segment. According to the information provided, the company will operate 17 production plants located in the EMEA region and the United Kingdom. Total sales volume is expected to amount to EUR 600 million, with employment of around 2,500 people.
This operating structure further strengthens Coveris's profile as a supplier of flexible plastic and paper packaging. The company is thus continuing its strategy of concentrating on key segments of the flexible packaging market, while the labels and board business will be developed by Paragon Print and Packaging under the ownership of Kingswood Capital Management.
Paragon Print and Packaging as an independent entity
Once the transaction is closed, the Paper Packaging Division will revert to the name Paragon Print and Packaging and will operate as an independent organisation. The announcement stressed that the change of ownership is intended to enable the continuation of existing operations and further development of the product portfolio in the paper packaging segment, directly related to labels and board.
The sale of the Paper Packaging Division is part of a broader trend of portfolio streamlining by groups operating in the packaging market and of focusing on core technological competences, particularly in flexible packaging solutions. For the plastic and paper packaging sector, this transaction is another example of business models being adapted to the changing demand structure and customer expectations in the EMEA region.
