Wind Point Partners said March 6 that it agreed to sell Paragon Films to Wellspring Capital Management. Financial terms weren’t announced. Paragon, of Broken Arrow, Oklahoma, makes transit packaging films.
Wind Point Partners to Sell Paragon Films to Wellspring Capital Management
Chicago, Illinois and New York, New York – March 6, 2019 – Wind Point Partners (“Wind Point”) and Wellspring Capital Management (“Wellspring”) today announced that Wellspring has signed a definitive agreement to acquire Paragon Films (“Paragon” or the “Company”) from Wind Point. Paragon is a leading manufacturer of high-performance transit packaging films within North America. Terms of the transaction were not disclosed. The transaction is expected to close within the next 45 days.
Based in Broken Arrow, Oklahoma, Paragon produces stretch films which are principally used to unitize pallet loads while in storage and transit. 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.
In December 2016, Wind Point partnered with executive Darin Tang to acquire Paragon from the Company’s founder, Mike Baab. Darin, former Senior Vice President of Packaging at Veritiv, added considerable commercial skills and relationships to the Company, augmenting the market leading operational and technology capabilities built over Paragon’s 30-year history. 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.
Alex Washington, Managing Director at Wind Point, commented, “Paragon is a case study in Wind Point’s investment strategy of assisting family-owned companies to affect a successful leadership transition and unlock additional areas for equity value creation. We thank Darin and the management team for their partnership in delivering an outstanding outcome.”
“I want to thank Wind Point and our board for their tremendous support over the last two plus years,” stated Mr. Tang. “The Paragon team has delivered strong results over this time period and are proud of our successes. We very much look forward to continuing our momentum with our new Wellspring partnership.”
John Morningstar, Managing Partner at Wellspring, stated, “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.”
Kirkland & Ellis served as legal counsel to Paragon Films, while Rothschild & Co. and Robert W. Baird acted as financial advisors to the Company. McDermott Will & Emery served as legal counsel to Wellspring. Antares Holdings, NXT Capital, Newstone Capital, and Blackrock Kelso will provide financing for the transaction.
About Paragon Films
|Paragon Films is continually evolving stretch film to deliver stretch film products unparalleled in performance, value, quality and consistency. With plants strategically located in Oklahoma, North Carolina, and Washington, Paragon efficiently services North America, Canada, Mexico, South America, and several international locations across a wide range of industries. www.paragonfilms.com.|
|About Wind Point Partners|
|Wind Point Partners is a Chicago-based private equity investment firm with approximately $2 billion in assets under management. Wind Point focuses on partnering with top caliber management teams to acquire well-positioned middle market businesses where it can establish a clear path to value creation. The firm targets investments in the consumer products, industrial products, and business services sectors. Wind Point is currently investing out of Wind Point Partners VIII, a $985 million fund that was initiated in 2016.
Additional information about Wind Point is available atwww.windpointpartners.com.
|About Wellspring Capital Management|
|Wellspring Capital Management is a private equity firm headquartered in New York. Since its founding in 1995, Wellspring has raised over $4 billion of initial capital commitments through six private equity funds. Over the past 20 years, Wellspring has invested in over 35 platform investments across various segments of the U.S. and global economies. Wellspring’s objective is to bring partnership, experience and value creation to each investment. By teaming up with strong management, Wellspring is able to unlock underlying value and pursue new growth opportunities through strategic initiatives, operating improvements and add-on acquisitions. The firm functions as a strategic partner, providing management teams with top-line support, M&A experience, financial expertise and access to resources.
For additional information, please visit www.wellspringcapital.com.