Investcorp, the asset management firm specializing in alternative investments, announced recently, in a press release, that it had agreed to acquire Armacell International GmbH from Gilde Buy-Out Fund and funds managed and advised by CVC Capital Partners (CVC).

Armacell is the global market leader in the development and production of flexible technical insulation.  The Company's product categories are mainly based on Elastomerics and Polyethylene technologies, markets that are characterized by attractive growth.  Its insulation products are predominantly sold to wholesalers, including insulation specialists, heating and plumbing specialists, refrigeration wholesalers, OEMs or DIY retailers.

Armacell was spun off from Armstrong World Industries in 2000 and is today a global business, headquartered in Munster, Germany, with operations in the United States, South America, Central and Eastern Europe, Russia and Asia.  During FY2006, the Company expects to generate sales of Euro 325m.

Commenting on the transaction, Yves Alexandre, a managing director in Investcorp's private equity team, said:  "Armacell is a true leader in the flexible insulation industry. We are excited to be backing a strong management team in a growing industry and believe that the Company is an attractive platform for growth in insulation and technical foams."

Ulrich Weimer, Armacell's CEO, said: "Materialising on market opportunities, consolidating maturing industries, investing into new geographies and bringing new technologies to the market are key elements of Armacell's growth strategy. Investcorp and Armacell are aligned to grow the business to create value for shareholders, employees and customers."
Closing is expected to occur towards the end of January 2007.

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