mynth
10/2014

PAROC GROUP acquired by CVC

FINLAND Chemicals & Materials / Construction Materials EV 500M - 1.5b EUR

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 in 2013, is valued in this transaction at an EV/EBITDA multiple of , representing a to the average currently observed in the Industry & Manufacturing sector (11.5x).

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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.

Ent. Value

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Historical Financials (EUR)

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2012

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REFERENCES

Valuation range: EV 500M - 1.5b EUR

Revenue range: 250M - 500M EUR

EBITDA range: 50M - 100M EUR

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of PAROC GROUP by CVC are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Target: paroc group

Acquirer: cvc