Wind Point Partners wasted no time in jumping back into the plastic film business.
The Chicago-based private equity firm is acquiring Paragon Films Inc. just weeks after selling off its majority interest in plastic bag maker Novolex.
Founded by Mike Baab in 1988, Paragon has locations Broken Arrow, Okla.; Taylorsville, N.C., and Union Gap, Wash.
Paragon makes stretch films “principally used to unitize loads while in storage and transit,” the new owners said.
“Wind Point is the perfect fit with Paragon's culture and core values. This partnership will provide Paragon with the opportunity to pursue tremendous growth and will benefit our customers and employees which was my most important goal as I begin to transition into retirement,” Baab said in a statement.
Wind Point is tapping Stan Bikulege, who is CEO of Novolex, to serve as chairman of Paragon. Darin Tang is joining the company as CEO. Tang had been senior vice president of strategic packaging solutions at Veritiv, a paper and packaging distributor.
“Mike Baab has built a phenomenal company with best-in-class technical leadership. Wind Point has a proven strategy of working with family-owned companies to navigate leadership transition. With Stan and Darin's complementary experience and track records for creating value in the packaging and industrial film markets, we look forward to continued success,” said Alex Washington a Wind Point managing director, said in a statement.
Paragon Films used Blaige & Co. of Chicago as an adviser on the transaction. Terms of the deal were not disclosed.
“We found the perfect partner who appreciates our unique culture and people, and has the industry expertise and capital to fund our continued aggressive growth through proprietary new product development, geographic expansion and strategic acquisitions,” Baab said.
Baab “will remain a significant investor and Paragon board member,” Wind Point indicated.
It was just in late November that Wind Point and TPG Group sold Novolex, which makes both plastic and paper packaging, to Carlyle Group for an undisclosed amount.