A transit packaging films maker in Oklahoma is being sold by one private equity firm to another.
New York-based Wellspring Capital Management LLC is buying Paragon Films Inc. of Broken Arrow, Okla., from Wind Point Partners of Chicago. The two sides have signed a definitive agreement and expect the deal to close within 45 days.
Paragon makes stretch films most typically used to secure pallet loads during transit and storage.
Wind Point and Darin Tang acquired Paragon in December 2016 from founder Mike Baab not long after it divested its majority interest in plastic and paper packaging maker Novolex.
Paragon has manufacturing sites in Broken Arrow, Okla., Taylorsville, N.C., and Union Gap, Wash.
"The market for high-performance stretch film is experiencing significant growth driven by transportation and e-commerce trends that are increasing points of distribution and warehousing, as well as raising the technical requirements for secure packaging," the companies said in a statement announcing the sale.
Tang, a former senior vice president of packaging at Veritiv, brought "commercial skills and relationships" to Paragon's operational and technology capabilities, the companies said.
"That combination, along with over $10 million in capital investment for capacity expansion, accelerated revenue and earnings growth to double digit rates under Wind Point's ownership," according to the statement.
Managing Director Alex Washington at Wind Point, in a statement, called Paragon "a case study" in his company's "investment strategy of assisting family-owned companies to affect successful leadership transition and unlock additional areas for equity value creation."
Wellspring signaled that current management will stay with Paragon.
"We look forward to building upon the success that Wind Point and the Company have achieved and are particularly excited to do so with the team that is currently in place. Darin and his team have built an excellent culture at Paragon that fits very well with our approach," said John Morningstar, managing partner at Wellspring, in a statement.
Wellspring previously owned flexible packaging maker ProAmpac LLC.