Coveris has revealed it has agreed to sell its labels and board business (Business Unit Paper) to US private equity company Kingswood Capital Management, with the deal expected to close within the first quarter of 2026.
Following the signing of the agreement in January 2026, the deal is subject to customary completion undertakings and will see the former Business Unit Paper operating as stand-alone entity under its former name of Paragon Print and Packaging.
Upon the closing of the deal, Coveris’ operations will consist of 17 flexible manufacturing facilities in EMEA and UK, with a sales volume of €600m and a workforce of 2500 employees. Paragon Print and Packaging will operate with a sales volume of €270m and a workforce of 1400 colleagues.
Christian Kolarik, chief executive officer of Coveris, says: “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 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.”
Towards the end of 2025, Coveris entered an exclusive agreement with TIPA Compostable Packaging to manufacture and market compostable labels for fresh produce in the UK, in response to increasing market demand and tightening regulatory requirements for the compostability of produce stickers. TIPA says its new film offers moisture resistance while remaining flexible, allowing the stickers to securely adhere to produce that often has wet or varied surfaces.
Last month Coveris partnered with Rowse Honey to update its premium Manuka Honey range with uncoated substrates, brightly-coloured hot foils, and radio frequency security. The upgraded label solution replaces silver paper with textured, uncoated substrates for a more natural look and feel.
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