Investment vehicle takes controlling stake in Paragon Print and Packaging

An affiliate of Sun European Partners, the European adviser to Sun Capital Partners, has acquired a majority stake in Paragon Print and Packaging, a UK provider of packaging and outsourced services to the private label fresh and chilled food market.

Established in 1994, the Paragon Print and Packaging Group is comprised of four divisions supplying award-winning printed labels, sleeves, cartons, lined board, film and artwork.

The group operates from 10 UK manufacturing facilities totalling in excess of 650,000 sq ft, employs approximately 1,200 staff and has a turnover exceeding £170 million.

The Paragon Print and Packaging Group serves around 1,800 customers, including some of the UK’s leading food manufacturers and end-market retailers, such as Tesco, Sainsbury’s, Asda, Marks and Spencer, Morrisons, Co-Op, Waitrose and Iceland.

Prior to the transaction, Paragon was majority owned by management (51 percent), 34 percent by Equistone Partners Europe Limited and 15 percent by LDC.

Paragon founder Tony Lennon is remaining as an investor and advisor with the management team.

Sun European Partners has significant experience in the packaging industry and its affiliates, as well as those of Sun Capital Partners, have completed 34 acquisitions globally in the packaging sector.

Total combined revenue of affiliated portfolio companies in the packaging sector are in excess of €3 billion and include companies such as: Albéa, a global leader in the plastic beauty packaging market; Paccor, a European rigid plastic packaging manufacturer of plastic cups, containers, lids and trays for the dairy, fresh food and edible fats sector; Kobusch Sengewald, a leading provider of high value, bespoke, plastic-based flexible and semi-rigid packaging solutions to the food, chemical, hygiene product and medical sectors; and The Britton Group, a leading European provider of flexible packaging solutions with extrusion, printing, lamination and conversion capabilities.

Philippe Neuschaefer, vice president at Sun European Partners, said: ‘Paragon is an excellent business with an impressive management team holding market leading positions in a number of key industry segments, notably food labelling.

‘Through our extensive packaging and retail expertise and know-how, we are looking forward to helping Paragon expand its leading position in the labelling market and establish itself even further in the areas of film and lined board to create a diversified industry champion.’

Mark Lapping, chief executive officer of Paragon, said: ‘We at Paragon are looking forward to working with the team at Sun European Partners to further build on our market leading position. We have exciting plans to develop the business in our existing and new product sectors as well as through further acquisitions.

‘With Sun European Partner's strength in packaging, our exceptional employees and our customer focus, we have the winning formula required to ensure Paragon continues to grow and succeed.’

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