France FR
Germany GER

Scope of intervention

Sycomore Corporate Finance acted as exclusive financial advisor to Armacell and its Management

Date of closing

February 2016
Blackstone and KIRKBI have agreed to acquire the Germany-based manufacturer of flexible foam products for equipment insulation and technical applications, Armacell from Charterhouse.

With this transaction, Armacell will continue to benefit from increasing trends such as the global energy-efficiency, growing in its existing and new insulation markets. Together with Blackstone and KIRKBI, Armacell will use this strong basis to consequently drive the growth of the company forward and through the global trends energy efficiency and substitution of existing insulation material which increase the demand for Armacell´s high-tech products long-term.

Under the approximately 3-year-ownership of Charterhouse, Armacell has achieved double-digit growth through a series of operational improvements. The company has expanded its global footprint in Asia, India and the Middlle East. Furthermore, Armacell has acquired Oneflex, a leading Turkish insulation materials manufacturer, as well as the business of Industrial Thermo Polymers Limited, the leading polyethylene (PE) insulation foam manufacturer in Canada. Besides this, the company has developed manufacturing operations in Russia.

According to Armacell’s fiscal 2014 annual report, the firm recorded 13% growth in revenues during 2011−2014 period. Moreover, revenues increased close to 9% on a year over year basis in 2014, of which 7.3% stemmed from organic growth, while 1.5% reflected benefits from recent acquisitions.

Charterhouse acquired Armacell in 2013 in a €520m deal and the sale is the seventh exit from the firm’s ninth fund.


  • Support Armacell in its international development and capitalize on growth opportunities, both organically and through acquisitions
  • Benefit from the global trends energy efficiency and substitution of existing insulation materials to strengthen and expand Armacell’s market position

Armacell at a glance

Armacell is a world leader in flexible insulation foams for the equipment insulation market and also a leading provider of engineered foams. In 2014, the Germany-based company with currently approximately 2,600 employees, has generated net sales of €452.2m. With its 23 manufacturing plants in 16 countries on four continents, Armacell follows a strategy of internationalization. The company operates within two main businesses: the advanced insulation business develops flexible insulation foam products for the insulation of mechanical equipment and the engineered foams business develops and markets light foams for use in a broad range of end-markets.

Blackstone at a glance

The Blackstone Group (NYSE: BX), incorporated on 2007, is a global alternative asset manager with over $330bn in assets under management. The Company operates through four segments: Private Equity, Real Estate, Hedge Fund Solutions and Credit. It also provides capital markets services.

KIRKBI at a glance

KIRKBI is a holding and investment company owned by the Kirk Kristiansen family. The company’s strategic activities include a 75% ownership of the LEGO Group, a 29.9% ownership of Merlin Entertainments plc and investments in renewable energy.