Insulation manufacturer sold in major PE deal
AN international manufacturer of insulation products has changed hands in a multi-million pound private equity deal.
Armacell, which makes flexible foam products for equipment insulation and technical applications and which has operations at 23 plants in 16 countries on four continents, has been sold by Charterhouse to Blackstone and KIRKBI/
Armacell’s UK operation is headquartered on Mars Street in Oldham, in 2014 Armacell UK had sales of £15.1m and employs 105 people.
Armacell operates within two main businesses, Advanced Insulation and Engineered Foams. The Advanced Insulation business develops flexible foam products for the insulation of mechanical equipment in a range of end markets where energy distribution is required, such as commercial and residential construction, industrial applications, and the oil and gas industry. Its speciality insulation products are primarily used for air conditioning and plumbing pipes.
The second division focuses on speciality light engineered foams for use in automotive and sports applications as well as medical and industrial uses.
With regional headquarters in Germany, North Carolina in the US and Singapore, Armacell has more than 2,600 employees worldwide. It will continue to be led by Patrick Mathieu who has over 25 years’ experience in the sector and has been chief executive of the business since 2012.
Mathieu said: “We firmly believe that now is the perfect time to take the business to the next level. Armacell will benefit from Blackstone’s international experience and expertise as we enter this next phase of growth. As such, we are delighted to partner with them going forward.”
Lionel Assant, head of European private equity at Blackstone, added: “Armacell is a highly successful business with market leading positions led by an excellent and proven management team. We believe Armacell will continue to benefit from increasing trends such as global energy-efficiency.
“The company’s strong product innovation should also enable the business to continue growing in its existing and new insulation markets. We look forward to working with Patrick and the team going forward to capitalise on further growth opportunities, both organically and through acquisitions.”
