Key Takeaways
- • Atlantic Ridge Capital has agreed to acquire Paragon Films from Rhône Group for approximately $900 million, marking the New York firm's first investment.
- • The deal is being done in partnership with Paragon's management team, led by CEO Darin Tang, and Grafine Partners, which backed Atlantic Ridge at its formation.
- • Paragon will be the company's fourth private equity owner since 2016, following Wind Point Partners, Wellspring Capital Management and Rhône Group.
- • Paragon serves more than 20,000 end users through distributors in food and beverage, consumer products, e-commerce, retail and industrial markets, and its thin-gauge films claim customers use 20% to 40% less film.
- • The transaction is expected to close in the fourth quarter of 2026, with BMO Capital Markets and Santander Corporate & Investment Banking advising Atlantic Ridge.
Summary
Atlantic Ridge Capital has agreed to acquire Paragon Films, a Broken Arrow, Oklahoma-based maker of stretch film and other plastic packaging, from Rhône Group for approximately $900 million, according to Private Equity Professional. The New York-based firm is buying the business in partnership with Paragon's management team and Grafine Partners, which backed Atlantic Ridge at its formation. The deal is Atlantic Ridge's first investment. Founder and CEO Eytan Tigay said the firm was founded to partner with exceptional management teams to scale, improve and modernize high-quality industrial technology businesses.
Paragon makes stretch film used to secure loaded pallets in transit, along with hand films, specialty films and thin-gauge shrink film. Its product lines include the Nexus machine film, Global Force, Contrast and Cold Force, as well as hand films sold under the Edge, Spartan, Titus and Torque brands. The company sells through distributors to more than 20,000 end users and serves customers in all 50 states, Canada, Mexico and South America. Paragon says its proprietary resin formulations and multi-layer casting let customers use lighter-gauge wrap, with customers typically using 20% to 40% less film and saving 20% to 30% in cost. Recent recycled-content products include Power Edge PCR and Beyond PCR.
Paragon was founded in Tulsa in 1988 by Mike Baab. Wind Point Partners acquired the business in December 2016 with Mr. Tang, then sell-side packaging executive at Veritiv, before selling it to Wellspring Capital Management in March 2019. Rhône acquired Paragon from Wellspring in December 2021. Under Rhône, Paragon expanded its North Carolina plant, introduced recycled-content lines and added a Mexico plant. CEO Darin Tang said the partnership will help accelerate product development, expand recycled-content offerings, invest in AI and automation, and pursue acquisitions in new geographies.
According to Global Market Insights, the global stretch and shrink film market totaled about $7.6 billion in 2025, with US sales of about $2.1 billion and shrink film expected to grow about 6.2% annually through 2035. The top five producers held roughly 48.5% of the market in 2025. Separately, Intertape Polymer Group, which Clearlake Capital acquired in 2022, recently bought Clysar, an Iowa-based shrink film maker. BMO Capital Markets and Santander Corporate & Investment Banking advised Atlantic Ridge, and UBS Investment Bank, BMO and Santander provided committed debt financing. The transaction is expected to close in the fourth quarter of 2026.
Paragon makes stretch film used to secure loaded pallets in transit, along with hand films, specialty films and thin-gauge shrink film. Its product lines include the Nexus machine film, Global Force, Contrast and Cold Force, as well as hand films sold under the Edge, Spartan, Titus and Torque brands. The company sells through distributors to more than 20,000 end users and serves customers in all 50 states, Canada, Mexico and South America. Paragon says its proprietary resin formulations and multi-layer casting let customers use lighter-gauge wrap, with customers typically using 20% to 40% less film and saving 20% to 30% in cost. Recent recycled-content products include Power Edge PCR and Beyond PCR.
Paragon was founded in Tulsa in 1988 by Mike Baab. Wind Point Partners acquired the business in December 2016 with Mr. Tang, then sell-side packaging executive at Veritiv, before selling it to Wellspring Capital Management in March 2019. Rhône acquired Paragon from Wellspring in December 2021. Under Rhône, Paragon expanded its North Carolina plant, introduced recycled-content lines and added a Mexico plant. CEO Darin Tang said the partnership will help accelerate product development, expand recycled-content offerings, invest in AI and automation, and pursue acquisitions in new geographies.
According to Global Market Insights, the global stretch and shrink film market totaled about $7.6 billion in 2025, with US sales of about $2.1 billion and shrink film expected to grow about 6.2% annually through 2035. The top five producers held roughly 48.5% of the market in 2025. Separately, Intertape Polymer Group, which Clearlake Capital acquired in 2022, recently bought Clysar, an Iowa-based shrink film maker. BMO Capital Markets and Santander Corporate & Investment Banking advised Atlantic Ridge, and UBS Investment Bank, BMO and Santander provided committed debt financing. The transaction is expected to close in the fourth quarter of 2026.
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