Private Equity News & Analysis

Investcorp buys industrial materials business(3)

Investcorp, a Bahrain and London-listed alternative assets manager, will buy Armacell International, an insulation manufacturer, for an undisclosed amount, in its second acquisition in the industrial sector this year.

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Investcorp, a Gulf-focused asset management firm, will buy Armacell International, an insulation manufacturer, from private equity firms Gilde Buy-Out Partners, and CVC Capital Partners, for an undisclosed amount.

The deal is expected to close towards the end of January 2007.

Armacell develops and produces flexible technical insulation. The company was spun off from Armstrong World Industries, a floors, ceilings and cabinets manufacturer, in 2000 and has its headquarters in Germany. 

Armacell will be Investcorp’s second investment in the industrial materials sector. In June the firm bought Orefi, a French industrial supplies business, from PPM Capital, the private equity arm of UK insurer Prudential.

Earlier this month in a secondary listing Investcorp raised $420 million (€319 million) in global depository receipts on the London Stock Exchange at an offer price of $29 per receipt.

Founded in 1982, Investcorp has arranged investments with a combined value of about $32 billion and currently has more than $10 billion in invested assets under management.