December 11, 2019 / 1:54 PM / 3 months ago

Banks await nod on Armacell buyout financing

LONDON, Dec 11 (LPC) - Banks are set to be appointed on a debt financing backing an acquisition of insulation foam maker Armacell that will total around €800m, banking sources said.

Private equity firm PAI Partners and Lego owner Kirkbi said on December 4 they would buy insulation foam maker Armacell from Blackstone Group for an undisclosed firm.

Reuters reported in October that a deal could be valued at €1.3bn-€1.5bn.

Banks are expected to be appointed shortly and the financing will launch for syndication in the first quarter of 2020, joining the growing list of event-driven leveraged financings expected to come to market.

The financing is expected to include leveraged loans.

PAI Partners, which is one of the oldest European private equity firms, will become the majority shareholder of Armacell.

Danish family investor Kirkbi, which has been an investor in Armacell since 2016, will increase its stake in the company to a significant minority position.

Based in Luxembourg, Armacell operates 24 manufacturing facilities around the world and employs 3,000 staff. (Editing by Christopher Mangham)

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