PAROC GROUP acquired by CVC
Context
Funds advised by CVC Capital Partners have signed an agreement to acquire 100% of Paroc Group from its existing institutional shareholder group. The transaction marks a new growth phase for Paroc following a successful five-year period of organic expansion under its previous institutional owners. The strategic rationale for CVC is to capitalize on Paroc’s market-leading position in the Nordics and Baltics while supporting its expansion into high-growth regions like Russia. CVC intends to build upon Paroc’s recent success in its higher-value technical insulation division, which benefited from significant investment in the Trzemeszno facility in Poland. For Paroc, the partnership with CVC provides access to a partner with deep expertise in the building materials sector and a proven history of supporting international growth strategies. The deal was advised by Deutsche Bank, Merasco, and BCG for the buy-side, and Lazard & Co. for the sell-side. Completion of the transaction is subject only to customary competition clearances.
PAROC GROUP, which reported an EBITDA margin of LOGIN in 2013, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN to the average currently observed in the Industry & Manufacturing sector (11.6x).
Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.
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Target
Headquartered in Helsinki, Paroc is a leading producer of stone wool insulation specializing in the Nordic and Baltic regions. The company manufactures building insulation and technical insulation for residential and commercial construction markets, as well as specialized industrial applications. Paroc maintains a pan-European sales presence supported by nine production facilities across Finland, Sweden, Lithuania, Poland, and Russia. Its business model emphasizes high-quality products and innovative solutions, particularly within its higher-margin technical insulation division. During the five years prior to the acquisition, the group successfully expanded into the Central and Eastern European (CEE) region and established domestic production in Russia to capture growth in rapidly evolving markets. With approximately 2,100 employees, Paroc focuses on sustainable thermal, fire, and sound insulation solutions.
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Historical Financials (EUR)
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REFERENCES
Valuation range: EV 500M - 1.5b EUR
Revenue range: 250M - 500M EUR
EBITDA range: 50M - 100M EUR
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Authors: verified mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).
Target: paroc group
Acquirer: cvc