ARMACELL
Charterhouse snaps up technical insulation producer for more than EUR 500m / Concern over future growth potential in weak eurozone
The owner of Armacell (Münster / Germany; www.armacell.de) has changed hands once again when Investcorp, a private equity group based in Manama, Bahrain, agreed to the sale of the German company to British Charterhouse Development (London; www.charterhouse.co.uk) for more than EUR 500m.
According to a Reuters March report, the sales figure is much lower than the original asking price and the Bahraini company appeared to be struggling in its attempts to attract buyers ever since it announced in October 2012 that is was shopping the German producer of flexible technical insulation materials around – see Plasteurope.com from 31.10.2012.
The problem of finding a buyer had apparently less to do with the company’s pedigree and more to do with the Eurozone crisis and investors’ concern that future growth might be stymied due to the weakened region.
Investcorp acquired Armacell in 2007 for EUR 400m and has worked closely with the management team to grow the business organically and expand into new geographic markets. Armacell now operates 19 manufacturing facilities in 13 countries and serves 30 countries around the world. Completion of the sale is subject to competition authority clearance.
Under Investcorp's ownership, Armacell increased sales by 30 percent to approximately EUR 430m while adding to the number of employees worldwide, which currently stands at more than 2,300. In Addition, they significantly padded investment in R&D and product development.
Gilbert Kamieniecky, a principal in Investcorp's European corporate investments team, explained: "By focusing on the development of new technologies and extending its geographic footprint, around 60% of Armacell's group sales now come from beyond Europe and the company has evolved to become a global market leader in elastomeric insulation foams."
Charterhouse leads and invests in European buy-outs and has been doing so since the 1980s.The company website claims that the private equity firm has made more than 135 transactions, worth in excess of EUR 50 bn in transaction value, and an investment realisation rate of roughly 86%.
According to a Reuters March report, the sales figure is much lower than the original asking price and the Bahraini company appeared to be struggling in its attempts to attract buyers ever since it announced in October 2012 that is was shopping the German producer of flexible technical insulation materials around – see Plasteurope.com from 31.10.2012.
The problem of finding a buyer had apparently less to do with the company’s pedigree and more to do with the Eurozone crisis and investors’ concern that future growth might be stymied due to the weakened region.
Investcorp acquired Armacell in 2007 for EUR 400m and has worked closely with the management team to grow the business organically and expand into new geographic markets. Armacell now operates 19 manufacturing facilities in 13 countries and serves 30 countries around the world. Completion of the sale is subject to competition authority clearance.
Under Investcorp's ownership, Armacell increased sales by 30 percent to approximately EUR 430m while adding to the number of employees worldwide, which currently stands at more than 2,300. In Addition, they significantly padded investment in R&D and product development.
Gilbert Kamieniecky, a principal in Investcorp's European corporate investments team, explained: "By focusing on the development of new technologies and extending its geographic footprint, around 60% of Armacell's group sales now come from beyond Europe and the company has evolved to become a global market leader in elastomeric insulation foams."
Charterhouse leads and invests in European buy-outs and has been doing so since the 1980s.The company website claims that the private equity firm has made more than 135 transactions, worth in excess of EUR 50 bn in transaction value, and an investment realisation rate of roughly 86%.
29.05.2013 Plasteurope.com [225416-0]
Published on 29.05.2013
German version of this article...