HedgeCo.Net — Atlantic Ridge Capital has agreed to acquire Paragon Films, a maker of ultra-high-performance stretch films, for about $900 million in a transaction that includes management and Grafine Partners, according to a GlobeNewswire release and firm announcements. The deal is Atlantic Ridge’s debut investment and is expected to close in the fourth quarter of 2026, subject to customary conditions.
Paragon supplies high-performance stretch film used to unitize and protect palletized goods across industrial and retail supply chains. Buyers of packaging platforms typically underwrite stable volume tied to goods movement, pricing power in specialty grades, and opportunities to expand capacity or adjacent product lines once the business is private.
Debt financing is being provided by BMO and Santander, according to the announcements, a structure that pairs bank leverage with sponsor equity on a first deal for a new firm. Closing the transaction in Q4 would give Atlantic Ridge an operating industrial asset as its flagship before it builds a broader portfolio.
Debut deals of this size are closely watched because they set the firm’s underwriting template. A roughly $900 million packaging acquisition with management rolling alongside Grafine suggests Atlantic Ridge is targeting established industrial niches rather than early-stage platforms, and that it is willing to write a large check on day one.
For limited partners evaluating new private equity managers, the Paragon process will be an early test of Atlantic Ridge’s ability to source proprietary industrial deals, secure bank financing, and execute a close on schedule. Until funding and regulatory conditions are satisfied, the $900 million figure remains the agreed purchase price rather than a completed exit for sellers.