Rhône, a global private equity firm, announced today that it has agreed to sell Paragon Films, Inc., a leading manufacturer of ultra-high-performance stretch and shrink films, to Atlantic Ridge Capital and Grafine Partners for approximately $900 million.

Founded in 1988 and headquartered in Broken Arrow, Oklahoma, Paragon manufactures technologically advanced films used to secure and protect products during storage and transit. Its proprietary formulations and manufacturing processes allow customers to achieve superior load containment with thinner-gauge films. Paragon serves thousands of end users in the resilient and growing food and beverage, consumer products, e-commerce, retail, and industrial end-markets.

Since acquiring Paragon in December 2021, Rhône has supported management in its expansion of U.S. production capacity, acceleration of Paragon’s international growth, and its achievement of major milestones for the business, including:

  • Advancing product innovation, including the development of thinner films and products incorporating post-consumer recycled (PCR) resin;

  • Completing its first acquisition, purchasing Mexico-based stretch and shrink film producer Xpack Films in August 2025, which expanded Paragon’s international presence and added shrink film to its product portfolio;

  • Launching its Beyond machine film, the industry’s thinnest film designed to reduce virgin plastic content while maintaining performance;

  • Growing profits organically by over 50% and significantly expanding the company’s margin profile, while simultaneously investing in meaningful capacity expansion; and

  • Constructing a new state-of-the-art experience center in the United States.

“When we invested in Paragon, we saw a differentiated business with leading technology, a compelling customer value proposition, and significant growth potential,” said Lucas Flynn, Managing Director & Head of North America at Rhône. “With our support and cooperation, Darin and his team were positioned to expand U.S. production capacity, enter new international markets, and advance product innovation. Paragon is a stronger and more diversified business today, and we are proud of what was accomplished under our stewardship.”

“Rhône has been an engaged and supportive partner as we have invested in our operations and expanded internationally,” said Darin Tang, CEO of Paragon Films. “Their industry experience and international perspective have been valuable as we increased our manufacturing capabilities and completed our first acquisition. Throughout their ownership, we have remained focused on developing products that help customers protect their goods using less material. We are grateful to Rhône for supporting that work and helping us strengthen the business.”

Upon completion, the sale will mark the first realization from Rhône Fund VI, a 2022-vintage fund, reflecting the firm’s focus on industrial investments. This transaction is expected to cap an active year across Rhône’s flagship fund platform, including a number of cash distributions made to investors.

The transaction is expected to close in the fourth quarter of 2026 following receipt of customary closing conditions.

William Blair and UBS Investment Bank served as financial advisors in connection with the sale.

About Rhône

Rhône, established in 1996, is a global private equity firm with a focus on investments in businesses with a transatlantic presence. Rhône’s investment philosophy includes the development of strong, strategic partnerships with the companies in which it invests. Rhône has a history of implementing successful corporate carve-out transactions and working with entrepreneur- and family-led businesses, and operates across its London, New York, Madrid, and Milan offices.

Rhône has invested in a diversified portfolio of companies including investments in the industrial and consumer sectors. For more information about Rhône, its investment professionals, and its current portfolio, please visit: www.rhonegroup.com.

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