Key Takeaways
- • Rhône agreed to sell Paragon Films, Inc., a Broken Arrow, Oklahoma-based manufacturer of ultra-high-performance stretch and shrink films, to Atlantic Ridge Capital and Grafine Partners for approximately $900 million.
- • The sale marks the first realization from Rhône Fund VI, a 2022-vintage fund, according to the announcement.
- • Rhône reports Paragon's profits grew organically by over 50% during its ownership, which began in December 2021, alongside expanded U.S. capacity and international reach.
- • Paragon's first acquisition, Mexico-based Xpack Films, closed in August 2025, adding shrink film to its portfolio.
- • The transaction is expected to close in the fourth quarter of 2026; William Blair and UBS Investment Bank advised on the sale.
Summary
Rhône, the global private equity firm established in 1996, announced that it has agreed to sell Paragon Films, Inc. to Atlantic Ridge Capital and Grafine Partners for approximately $900 million, according to a Business Wire release dated October 13, 2026. Paragon, founded in 1988 and headquartered in Broken Arrow, Oklahoma, manufactures films used to secure and protect products in storage and transit. The company serves thousands of end users across food and beverage, consumer products, e-commerce, retail, and industrial markets.
Since acquiring Paragon in December 2021, Rhône has backed management in expanding U.S. production capacity and accelerating international growth. The release cites several milestones under Rhône's ownership: development of thinner films and products incorporating post-consumer recycled resin; the August 2025 acquisition of Mexico-based stretch and shrink film producer Xpack Films, Paragon's first acquisition; the launch of its Beyond machine film, described as the industry's thinnest film; organic profit growth of more than 50% alongside margin expansion; and construction of a new experience center in the United States.
Lucas Flynn, Managing Director and Head of North America at Rhône, said the firm saw a differentiated business with leading technology and significant growth potential when it invested. Darin Tang, CEO of Paragon Films, credited Rhône's industry experience and international perspective with supporting the company's expansion.
The sale is expected to be the first realization from Rhône Fund VI, a 2022-vintage fund, reflecting the firm's focus on industrial investments. Rhône said the transaction would cap an active year across its flagship fund platform, which included several cash distributions to investors. The transaction is expected to close in the fourth quarter of 2026, subject to customary closing conditions. William Blair and UBS Investment Bank served as financial advisors.
Since acquiring Paragon in December 2021, Rhône has backed management in expanding U.S. production capacity and accelerating international growth. The release cites several milestones under Rhône's ownership: development of thinner films and products incorporating post-consumer recycled resin; the August 2025 acquisition of Mexico-based stretch and shrink film producer Xpack Films, Paragon's first acquisition; the launch of its Beyond machine film, described as the industry's thinnest film; organic profit growth of more than 50% alongside margin expansion; and construction of a new experience center in the United States.
Lucas Flynn, Managing Director and Head of North America at Rhône, said the firm saw a differentiated business with leading technology and significant growth potential when it invested. Darin Tang, CEO of Paragon Films, credited Rhône's industry experience and international perspective with supporting the company's expansion.
The sale is expected to be the first realization from Rhône Fund VI, a 2022-vintage fund, reflecting the firm's focus on industrial investments. Rhône said the transaction would cap an active year across its flagship fund platform, which included several cash distributions to investors. The transaction is expected to close in the fourth quarter of 2026, subject to customary closing conditions. William Blair and UBS Investment Bank served as financial advisors.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.