Paroc sold to Arcapita

Arcapita is acquiring Paroc Holding Sverige AB and its subsidiaries from Banc of America Equity Partners Europe (BACPE) in a tertiary buyout transaction valued at €620m. Return details on the transaction were not disclosed.

BA Capital Partners Europe and its co-investors Nordico and BG Kapital partnered with the existing management team to lead the buyout of Paroc from Industri Kapital and shareholders in 2003. During BACPE’s ownership, Paroc almost doubled earnings before interest, tax, depreciation and amortisation (EBITDA), and increased its revenues from approximately €290m to expect 2006 revenues of approximately €375m.

Industri Kapital invested in Paroc in 1999, acquiring a 47% stake via the Industri Kapital 1997 fund, when Paroc was formed by a management buyout of Partek Insulation.

Helsinki-based Paroc is a manufacturer of stone wool insulation products. The business employs over 2,000 people in 13 countries and has seven factories in Finland, Sweden, Lithuania and Poland.

Lazard and Banc of America Securities provided M&A advice for the transaction to the shareholders of Paroc. Rothschild advised Arcapita. Legal advice was provided to Paroc’s shareholders by law firm Macfarlanes and to Arcapita by Gibson, Dunn & Crutcher.