Coveris has reached an agreement to sell its labels and board business, known as its Paper Business Unit, to U.S.-based private equity firm Kingswood Capital Management.
The transaction reflects Coveris’ strategy to sharpen its focus on core flexible packaging activities across Europe, the Middle East, Africa, and the UK.
Signed in January 2026, the deal remains subject to customary closing conditions and is expected to complete in the first quarter of 2026. Following completion, the Paper Business Unit will operate as a stand-alone company under its former name, Paragon Print and Packaging.
Christian Kolarik, Chief Executive Officer of Coveris, said the decision follows the successful development of the paper business since its establishment in 2020. He noted that its current level of maturity supported a joint decision by shareholders and management to divest the unit, enabling Coveris to concentrate its resources on its flexible packaging platform in the EMEA region.
Upon closing, Coveris will operate 17 flexible packaging manufacturing facilities across EMEA and the UK, generating approximately €600 million in sales and employing around 2,500 people. Paragon Print and Packaging will continue operations with €270 million in sales and a workforce of approximately 1,400 employees.
Coveris stated that the transaction positions both businesses for their next phase of development, with Paragon Print and Packaging expected to pursue continued growth under new ownership while Coveris advances its strategic focus on flexible packaging solutions.
Coveris is a European packaging manufacturer focused on flexible plastic and paper-based packaging solutions. The group operates manufacturing sites across EMEA and the UK, serving a wide range of consumer and industrial markets.
Source: Coveris
