Coveris has reached an agreement to sell its paper division to the US financial investor Kingswood Capital Management. The transaction represents a strategic realignment for the packaging manufacturer, which will focus entirely on flexible packaging solutions in EMEA in future.
Coveris, one of the major European manufacturers of flexible plastic and paper packaging, has signed an agreement on the sale of its labels and cardboard business („Paper Business Unit“). The buyer is the US private equity firm Kingswood Capital Management. The closing of the transaction is still subject to customary closing conditions and is expected in the first quarter of 2026.
„The Coveris Paper business unit has undergone continuous and very successful development since it was founded in 2020. We are proud of the results achieved. Based on this positive growth path and the current maturity of the business unit, the management and the shareholder Sun Capital have jointly taken the decision to divest the business unit. In future, we will be able to focus consistently on our EMEA business with flexible packaging. At the same time, we are confident that the paper business will continue to grow successfully under new ownership.“
Christian Kolarik, Chief Executive Officer of Coveris
Following the closing, the division will continue to operate as an independent company under its previous name Paragon Print and Packaging. Coveris is thus parting with a division that has been systematically built up since its foundation in 2020.
Strategic focus on flexible packaging
Following completion of the transaction, Coveris will consist of 17 production sites for flexible packaging in EMEA and the UK. The company expects a turnover of around 600 million euros and employs around 2,500 people. Paragon Print and Packaging will reportedly operate with a turnover of around 270 million euros and around 1,400 employees.
Source: Coveris
