Bahrain-listed Investcorp has agreed to sell Armacell, a manufacturer of technical insulation materials, to Charterhouse Capital Partners for more than €500 million, according to a statement.
The transaction needs to be approved by competition authorities.
Charterhouse declined to comment on the transaction, while Investcorp did not return a request for comment at press time.
Investcorp acquired German-based Armacell in 2007 for €400 million from Gilde Buy Out Partners and CVC Capital Partners, PEI reported at the time. Since then, it has grown the business organically and has led its international expansion. Armacell now has 19 manufacturing facilities in 13 countries.
Under Investcorp’s ownership, company sales rose by 30 percent to €430 million and staff numbers increased to more than 2,300. It also invested significantly in R&D and product development, the firm said.
Armacell has grown “despite operating in an industry disproportionately impacted by challenging economic conditions”, the firm said. “By focusing on the development of new technologies and extending its geographic footprint, around 60 percent of Armacell’s group sales now come from outside of Europe,” Gilbert Kamieniecky, a principal in Investcorp’s European corporate investments team, said in the statement.
Charterhouse is investing its €4 billion Charterhouse Capital Partners VIII, a 2006 vintage, according to Private Equity International’s Research & Analytics division. Last summer the London-based firm acquired safety equipment manufacturer Bartec from Capvis Equity Partners and Partners Group in a deal that was understood to be around €600 million, PEI reported at the time.
In January, Investcorp bought a majority stake in FishNet, North America’s largest information security provider. Last November, the firm netted a more than 2.1x return on the divestment of trailer parts distributer FleetPride.