Five PE firms bid for Investcorp-backed Armacell


ArmacellBahrain-backed buyout firm Investcorp reportedly has the pick of six bidders for its German insulation business Armacell amid a rise in interest in energy efficient products.

Private equity firms Charterhouse, Pamplona, Equistone, HgCapital and Goldman Sachs Private Equity have all placed “tentative” bids according to Reuters, which said a US-based building materials producer was also in the frame.

It cited two people familiar with the matter, who both said final bids were due in mid-March.

They said the offers value Armacell at between €400m and €500m, which they added was a discount to the valuations of peers.

Investcorp hired Barclays to arrange the long-mooted sale in October 2012, with the firm hoping to complete an exit by the end of the first quarter.

The firm bought Armacell for an undisclosed amount in 2006.

Armacell’s products are mainly based on polyethylene technologies and elastomerics, its core market segment, which commands a global market share of close to 50 per cent – more than twice the size of its closest competitor.

The company spun out of Armstrong World Industries in 2000 and today has operations in the US, South America, Central and Eastern Europe, Russia and Asia.

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