PARAGON FILMS acquired by ATLANTIC RIDGE / GRAFINE

Atlantic Ridge Capital agreed on 13 October 2026 to acquire Paragon Films, the Oklahoma stretch film manufacturer, from Rhône Group, at an enterprise value of $900m, an EV/EBITDA multiple of 10x–18x on an EBITDA of $50–100M. Grafine Partners, an early institutional backer and investor in Atlantic Ridge’s first fund, invested alongside the lead sponsor, and the management team joined them in the transaction. Completion was expected in the fourth quarter of 2026. It was the debut investment of Atlantic Ridge, the New York firm founded in 2024 by Eytan Tigay, who had been chief investment officer of Rhône, the seller. Rhône had itself bought Paragon in 2021 from Wellspring Capital Management, and ran the sale through William Blair, with the process reaching its second round by July. At the time of the deal, Paragon served more than 20,000 end users, under a management team led by chief executive Darin Tang that had been in place for more than a decade. Atlantic Ridge planned to fund product development in both stretch film and thin-gauge shrink film, extend the range into new product categories, widen the offer based on post-consumer recycled material, invest in artificial intelligence and automation, and pursue acquisitions taking Paragon’s technology into new regions. UBS Investment Bank, BMO Capital Markets and Santander Corporate & Investment Banking provided committed debt financing, with BMO and Santander also acting as financial advisers to Atlantic Ridge, while William Blair and UBS advised Paragon Films.

It is worth noting that the fund Rhone Capital took control of Paragon Films through an LBO in 2021.