Charterhouse hires banks to lead Armacell IPO


gasUK private equity firm Charterhouse has reportedly hired banks to prepare an IPO of German insulation materials firm Armacell.

Charterhouse has picked Deutsche Bank and Bank of America to act as global coordinators for the IPO with support from BNP, two people familiar with the plans told Reuters.

The company could be floated as early as late 2014, said the people.

Last year Armacell reported an EBITDA of €65m on revenues of €510m.

The report noted that the company’s sector peers including Rockwool or Kingspan trade at an average multiple of nine times their expected earnings, which means Armacell could be worth at more than €600m.

A source told the publication that the company was aiming for a valuation of 11 to 12 times its earnings.

Armacell was acquired by Charterhouse from Bahrain-based private equity firm Investcorp for €500m last year.

Investcorp bought Armacell in 2007 for €400m, which was reported to include close to €382.5m of debt.

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