The Bahrain-based buyout house hoped to receive about €500m for the business, but offers from Charterhouse, HgCapital and Pamplona were closer to €400m according to Reuters, which cited banking sources.
Goldman Sachs Private Equity and Equistone Partners dropped out of the bidding earlier this month according to previous reports, with second round bids due on March 11.
But Reuters said that deadline had been pushed back after the remaining bidders looked to be preparing to make lower-than-expected offers.
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 of this year.
The firm bought Armacell for an undisclosed amount in 2006. Reuters cited Thompson Reuters LPC data which said the deal was backed by €382.5m of debt.
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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