Grafine Partners and Atlantic Ridge Capital Join Forces to Acquire Paragon Films

Grafine Partners and Atlantic Ridge Capital: A New Era for Paragon Films

In an exciting development within the investment landscape, Grafine Partners and Atlantic Ridge Capital have come together to acquire Paragon Films, a prominent manufacturer in the packaging industry, in a deal estimated at about $900 million. This alliance marks a significant milestone, reflecting the strengths and aspirations of both companies in this strategic venture.

Founded in 1988 and based in Broken Arrow, Oklahoma, Paragon Films specializes in innovative film solutions designed to secure and protect products during storage and transportation. With its proprietary manufacturing processes, Paragon offers specialized, technologically advanced films that provide superior load containment while minimizing material usage. The company's commitment to sustainability is embodied in its tagline, "Thinner. Stronger. Greener.®" which emphasizes efficiency and eco-friendliness, boasting up to 30% cost savings and a reduction of film use by 40%.

The partnership will see Atlantic Ridge Capital take the lead on the investment, collaborating closely with Paragon's management team to foster substantial growth in the company's next phase. Grafine Partners, known for its principled investment strategies across lower and middle markets, possesses the required expertise and institutional capital, allowing it to forge beneficial partnerships that leverage industry-specific knowledge and resources.

According to Elizabeth Weymouth, the Founder and Managing Partner of Grafine, the analysis conducted during the underwriting process confirmed a strong belief in Paragon's business model and long-term growth potential. "Paragon has prominently positioned itself with a competitive advantage and durable demand," she noted. The investment aligns perfectly with Grafine's strategic goals, centered around combining solid industry insights with capital deployment.

Meanwhile, Eytan Tigay, the Founder and Managing Partner of Atlantic Ridge Capital, expressed enthusiasm about the collaboration. He highlighted Paragon's dedication to product performance and innovation, which has been pivotal in establishing a distinctive market presence. By pooling resources and expertise with Grafine, Tigay expects to build on Paragon’s strong foundation and further enhance its offerings to customers.

The acquisition is poised to close in the fourth quarter of 2026, and both companies are dedicated to ensuring a seamless transition that promotes sustainable growth and innovation in the industry. The transaction not only represents a key step in Grafine and Atlantic Ridge's long-standing relationship but also underscores the potential for investment opportunities within the industrial technology sector.

About Grafine Partners

Grafine Partners is a noted investment firm committed to generating alpha in privately held markets. Their focus is on the lower middle and middle market segments, where they believe there is significant potential for outperformance. By combining investment expertise with a dynamic sourcing network, Grafine strategically positions itself to back experienced private equity investors and their firms, fostering long-term alliances.

About Atlantic Ridge Capital

Founded by Eytan Tigay, Atlantic Ridge Capital is a private equity firm located in New York, specializing in high-quality middle-market businesses, especially in the industrial technology sector. The firm aims to collaborate with seasoned management teams while implementing a structured approach to modernize and enhance company performance through advanced digital and artificial intelligence capabilities.

About Paragon Films

Paragon Films stands out as a leader in the ultra-high-performance stretch film domain. With sustainability at the forefront of its mission, the company aims to provide packaging solutions that do not compromise durability for cost-effectiveness. Their strategy and commitment to advancing sustainable practices resonate with industry demands and customer expectations, making them a preferred partner for numerous sectors including food and beverage and e-commerce.

In summary, this acquisition is not merely a step towards expanding the operations of both Grafine Partners and Atlantic Ridge Capital, but also a testament to the evolution of business strategies in the industrial technology space, where sustainability and innovation play vital roles.