COVERIS has reached an agreement to sell its labels and board business (Business Unit Paper) to the US private equity company Kingswood Capital Management.
The deal is subject to customary completion undertakings and is expected to close within the first quarter of 2026, with the former Business Unit Paper operating as stand-alone entity under its former name of Paragon Print and Packaging.
Christian Kolarik, CEO of Coveris, said, “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 join 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 closing of the deal, the Coveris operations will consist of 17 flexible manufacturing facilities in EMEA and UK, with a sales volume of EUR 600m and a workforce of 2,500 employees. Paragon Print and Packaging will operate with a sales volume of EUR 270m and a workforce of 1,400 colleagues.
