Wind Point-Owned Paragon Films Is Said to Plan $500 Million Sale

(Bloomberg) -- Private equity firm Wind Point Partners is planning a sale of Paragon Films Inc. that could value the packaging manufacturer at as much as $500 million, according to people with knowledge of the matter.

The Chicago-based firm is working with an adviser to run an auction process for the company, said the people, who asked not to be identified because they weren’t authorized to speak publicly. Paragon is expected to attract interest from other buyout firms, the people said.

A final decision to pursue a sale hasn’t been made and Wind Point could decide to keep the company, they said.

Representatives for Wind Point and Paragon didn’t immediately respond to requests for comment.

Wind Point agreed to buy Broken Arrow, Oklahoma-based Paragon in 2016 without disclosing the terms. The company, which makes cast stretch films that are principally used to wrap containers while in storage or transit, is one of several packaging groups that Wind Point has invested in. It has owned stakes in Burrows Paper Corp. and Wisconsin Film & Bag Inc.

Since its founding in 1984, Wind Point has raised about $3 billion to invest in midsize companies, according to its website. The firm raised $985 million for its eighth fund in 2016, according to data compiled by Bloomberg.

©2019 Bloomberg L.P.