Coveris, one of the major European flexible plastic and paper packaging manufacturers, has announced the agreement to sell its labels and board business (Business Unit Paper) to the US private equity company Kingswood Capital Management.

After the signing in January 2026, 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 a stand-alone entity under its former name of Paragon Print and Packaging.

Christian Kolarik, chief executive officer of Coveris, said, “Since its establishment in 2020, the Paper Business Unit has been consistently and successfully developed. 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.”

Upon the closing of the deal, the Coveris operations will consist of 17 flexible manufacturing facilities in EMEA and the UK, with a sales volume of EUR 600 million and a workforce of 2500 employees. Paragon Print and Packaging will operate with a sales volume of EUR 270 million and a workforce of 1400 employees.