Atlantic Ridge Buys Paragon Films for About $900M

TL;DR: Atlantic Ridge Capital agreed on October 13, 2026 to buy Paragon Films for about $900 million, according to the company's press release. It is the firm's first deal. For anyone who has sold a business, the price matters less than what is unpublished: the debt and who rolls equity. Closing is expected in the fourth quarter.

I'm writing this one for the owner who has sold a company, or expects to. On a submarine, nothing was signed off until someone verified it. I read deal headlines the same way, and the first thing I check is how the buyer could lose.

What exactly was announced?

Atlantic Ridge will buy Paragon, which the release says was "founded in 1988 and headquartered in Broken Arrow, Oklahoma." The company makes films that secure products during storage and transit. Closing is "expected to close in the fourth quarter of 2026, subject to customary closing conditions."

The release doesn't name the seller. The Deal reported that it is Rhône Group, which bought Paragon in 2021 from Wellspring Capital Management.

Item	What the sources say
Buyer	Atlantic Ridge Capital, with Grafine Partners and Paragon's management team
Seller	Rhône Group, per The Deal (not named in the press release)
Price	About $900 million
Customers	More than 20,000 end users, per the company
Expected close	Fourth quarter of 2026
Financing terms	Not published

The missing row is the one I'd want most: how much debt goes into this. That number decides how much room the buyer has if sales soften.

Who is Grafine, and why is it in the deal?

The release describes Grafine Partners as "a significant investment partner in the transaction and an original backer of Atlantic Ridge at its formation." A separate Grafine announcement says Atlantic Ridge will lead the investment and work closely with Paragon's management on its next phase of growth.

So the firm leading the deal has no track record yet, and the backer that helped form it is helping write a very large first check. Access is not an edge. Judgment is, and with a debut firm you have only the stated strategy to judge it by. Verify before you trust.

What did the buyer pay for the earnings?

The Deal reported that "Sources said Paragon generated about $90 million in Ebitda and that the sellers were seeking up to a low double-digit Ebitda multiple." Earnings before interest, taxes, depreciation and amortization (EBITDA) is the yardstick buyers use to price a company like this. That figure comes from unnamed sources and neither company has confirmed it.

The seller's reported ask was up to a low double-digit multiple. Divide the $900 million price by $90 million and you get roughly ten times, which is my arithmetic, not a number from either side.

The same report says Paragon had less than $300 million in sales when Rhône bought it, citing S&P Global Ratings. That was 2021, so it says little about the company's size today.

Why would a private equity firm want a stretch-film maker?

The company's own pitch is about cost. Paragon says its Greener approach delivers 20% to 30% cost savings while using 20% to 40% less film. It also says it serves more than 20,000 end users across food and beverage, consumer products, e-commerce, retail and industrial markets.

My read is that a buyer sees a broad customer base buying a consumable, and a consumable gives lenders something to underwrite. That's an inference, not something any source states. It's also the argument a seller leans on when asking for a high multiple.

The Deal reports that Atlantic Ridge focuses on industrial technology businesses and looks to invest $50 million to $250 million in middle-market companies. If that range describes equity checks, this deal would sit at the top of it or above it. The report doesn't say which it means.

What does this mean if you're the one selling?

The release says the deal is "in partnership with Paragon's management team." It doesn't say whether managers are rolling equity. Nothing published says so, and I won't guess.

But if you sell to a private equity buyer, you may be asked to roll part of your proceeds into the new company. That makes you a minority owner beside the firm. You're paid later, and only if the exit works. Ask what the debt load is before you agree to it.

What should you watch next?

Watch for financing details in filings or trade press, since that's where the real risk shows up. Then watch whether Atlantic Ridge's next deal looks like this one. A debut deal shows appetite. Only a second starts to show strategy.

For how other buyers have structured industrial deals, I covered Bain Capital's carve-out of Volkswagen's engine unit and Blackstone's robotics actuator investment. Each shows a different way a buyer pays for an industrial asset. Bain's Vitabiotics purchase is a useful comparison on price.

Common mistakes when reading a deal like this

The biggest is treating a reported number as a filed one. Until a filing or the companies confirm the EBITDA figure, it's a source's claim.

Another is assuming the headline price is what the seller keeps. Fees, debt payoff and any management rollover all come out before proceeds reach the owners.

A third is counting a repeater as a second source. Several sites carried the press release word for word, so I cited the release itself.

FAQ

How much is Atlantic Ridge paying for Paragon Films? Approximately $900 million, according to the company's press release. The release doesn't break that into cash, debt or rollover equity.

Who is selling Paragon Films? The Deal reports that Rhône Group is the seller. It bought Paragon in 2021 from Wellspring Capital Management. The buyers' press release doesn't name the seller.

When will the deal close? The companies expect it to close in the fourth quarter of 2026, subject to customary closing conditions.

Can I invest in this deal? Nothing in the announcement offers a way in. This is a direct acquisition by a private equity firm and its partners. Angel Investors Network doesn't sell or allocate securities.

The bottom line

A reported ask of up to a low double-digit multiple, on earnings nobody has confirmed, is one seller's negotiating position. Don't anchor your own sale to it. If you'd like a plain-English breakdown of deals like this, subscribe to the free AIN briefing.

Educational content only. Not investment, tax, or legal advice. Not an offer or solicitation to buy or sell securities. Past performance does not guarantee future results. Private-market investments are illiquid and involve risk of loss, including total loss of capital. Consult qualified advisers. Angel Investors Network is not a broker-dealer or investment adviser.