After Goldman Sachs and Equistone pulled out of the race, only a few buyers are still in the hunt to land Armacell, the German insulation firm. Only private equity firms Charterhouse, HgCapital and Pamplona are preparing for new bids for the company with a deadline of March 11. According to banking sources, another private equity house and a trade buyer may also join the fray.
The company is being auctioned off by private equity firm Investcorp, based out of Bahrain. It had acquired Armacell back in 2007 when it was floating in about Eur382.4 million of debt. Now, the company is up for sale and is projected to be valued at Eur500 million or US$650.47 million.
Armacell is the world's top maker of flexible insulation, with a 40% market share. Its products are used in ductwork of buildings, such as schools, skyscrapers and factories. Its annual sales is Eur448 million in 2011.
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