MÜNSTER, GERMANY (Oct. 19, 3:25 a.m. ET) — Acoustic and thermal insulation foam producer Armacell Enterprise GmbH is for sale, according to a Reuters report.
The Münster-based firm makes polyolefin, rubber and other foams to insulate pipes and ductwork and for sale in sport and leisure, OEM and other markets.
“We hope to enter exclusive negotiations with one bidder early next year and close the deal by the end of the first quarter,” Armacell CEO Patrick Mathieu was quoted in the Oct. 17 Reuters report. Armacell's owner, private equity group Investcorp of Bahrain, has hired Barclays to help organize a sale of the foam producer.
The report stated the sale aims to capitalize on growing interest in energy-efficient products.
“In my eyes, it is worth more to a private equity investor than to a strategic one,” Mathieu was quoted.
Armacell's sales are expected to reach 441 million euros this year, about 50 percent more than in 2006 when Investcorp bought the business. About 60 percent of Armacell's business is outside Europe.
Armacell sold part of its business in 2011 to NMC SA of Eynatten, Belgium. NMC acquired the European polyethylene technical foams business but Armacell's other PE insulation and its North American PE technical foam businesses were not affected.