Charterhouse to sell high-tech insulation firm Armacell to Blackstone Group: Report

European private equity firm Charterhouse Capital Partners today struck a deal to sell high-tech insulation firm Armacell to US peer Blackstone Group.

Both PE firms did not disclose the financial terms of the transaction, but the deal values Luxembourg-based Armacell at €960 million ($1.02 billion), Reuters reported, citing a source familiar with the matter.

Charterhouse had acquired Armacell in 2013 for €520 million and has generated 54 per cent internal rate of return.

Armacell, the successor company to Armstrong World Industries insulation products business, was founded in 2000 following a management buyout.

Armacell is a manufacturer of high-end flexible insulation foams for the equipment insulation market and also a leading provider of engineered foams.

The company operates within two main businesses: The Advanced Insulation business develops flexible insulation foam products for the insulation of mechanical equipment, while the Engineered Foams business develops and markets light foams for use in a broad range of end-markets.

The high-tech products and system solutions of Armacell were used in the Empire State Building and the International Space Station. Beyond thermal insulation, its products are used as acoustic insulation, as central components of wind turbine blades or as gaskets and seals in a variety of modern car models.

It has 23 manufacturing facilities in 16 countries, including China, Thailand, India, Brazil, Saudi Arabia and South Korea and had 2014 sales of €452 million.