Atlantic Ridge Capital LLC on Tuesday, Oct. 13, said it’s agreed to acquire Paragon Films Inc. from Rhône Group LLC for about $900 million in partnership with Paragon’s management team and Grafine Partners LP.

New York-based Grafine, in a separate statement, said Atlantic Ridge will lead the investment and work with Paragon’s management team on the company’s next phase of growth.

The Deal reported in July that Rhône was working to exit its investment in Paragon, with William Blair & Co. LLC advising on a sale process that had advanced into the second round. Sources said Paragon generated about $90 million in Ebitda and that the sellers were seeking up to a low double-digit Ebitda multiple.

Rhône acquired Paragon in 2021 from Wellspring Capital Management LLC. At the time of Rhone’s investment, Paragon had less than $300 million in sales, according to S&P Global Ratings.

Broken Arrow, Okla.-based Paragon manufactures high-performance stretch films used to secure and protect products during storage and transit. The company serves more than 20,000 end users across food and beverage, consumer products, e-commerce, retail and industrial markets.

Paragon is led by CEO Darin Tang, whose management team has driven growth and product innovation for more than a decade. The company recently expanded its downgauging technology into shrink film, opening adjacent markets as it continues to invest in next-generation films.

Atlantic Ridge said it plans to support Paragon’s product development in stretch film and thin-gauge shrink film, expand into new product categories, broaden its post-consumer recycled-based offering, invest in artificial intelligence and automation, and pursue acquisitions that bring Paragon’s technology to new geographies.

Paragon marks the debut investment for Atlantic Ridge, which said the deal ranks among the largest transactions ever completed by a newly launched private equity firm.

Founded in 2024 by Eytan Tigay, the former chief investment officer of Rhône, New York-based Atlantic Ridge formally launched in late 2025. The firm looks to invest $50 million to $250 million in middle market industrial technology businesses, using operating resources, digital tools and AI capabilities to help companies scale, improve and modernize.

Grafine became an early institutional partner and investor in Atlantic Ridge’s inaugural fund. The New York-based investment firm said its investment in Paragon reflects its strategy of backing experienced private equity investors as they launch their own firms and partnering with sector specialists on middle market investments.

Rhône is a middle market private equity firm specializing in leveraged buyouts, recapitalizations and partnership financings in the consumer and industrial sectors. It closed its sixth fund in 2022 with €2.1 billion ($2.4 billion) in commitments, according to With Intelligence.

The acquirers expect the transaction to close in the fourth quarter of 2026, subject to customary closing conditions.

UBS Investment Bank, BMO Capital Markets Corp. and Santander Corporate & Investment Banking provided committed debt financing for the transaction. BMO and Santander also were financial advisers to Atlantic Ridge.

William Blair and UBS provided financial advice to Paragon Films.