| FRANKFURT, July 2
FRANKFURT, July 2 British buyout group
Charterhouse Capital is preparing a stock market
listing of its German insulation materials firm Armacell, three
people familiar with the plans said.
The private equity investor has asked investment banks to
pitch for a role in the initial public offering (IPO) by next
week, the sources said, adding an IPO could take place as early
as the second half of 2014.
Armacell would be the second German building materials group
to list this year after Braas Monier, which on
Wednesday traded 4 percent below its offer price.
Armacell in 2013 posted earnings before interest, taxes,
depreciation, and amortisation (EBITDA) of 65 million euros
($88.7 million) on sales of 510 million euros.
Peers such as Rockwool or Kingspan trade
at an average multiple of nine times their expected earnings.
If valued at a similar multiple, Armacell could be worth
more than 600 million euros in an IPO, although one source
familiar with the plans said that Charterhouse was hoping to
fetch a multiple of 11-12.
Charterhouse, which last year bought Armacell from
Bahrain-based private equity firm Investcorp for
over 500 million euros, declined to comment.
Armacell, which is based Muenster, Germany, and operates 20
manufacturing facilities around the world, also declined to
comment. It has over 2,500 employees and says it is the world's
largest maker of flexible insulation, making products used to
lag pipes and ductwork in buildings such as factories and
($1 = 0.7331 Euros)
(Additional reporting by Freya Berry, editing by Louise