Funds advised by CVC Capital Partners have acquired Paroc Group from its existing institutional shareholder group for an enterprise value of approximately EUR700 million.
Headquartered in Helsinki, Paroc is a producer of stone wool insulation in the Nordic and Baltic regions, producing building insulation and technical insulation for the residential and commercial construction markets, as well as various industrial applications. The group has approximately 2,100 employees and a pan-European sales presence, supported by nine production facilities in Finland, Sweden, Lithuania, Poland and Russia.
In a five-year period under the ownership of its current shareholder group, Paroc has grown its revenues from EUR317m (in 2009) to EUR433m (in 2013), and EBITDA from EUR46m to EUR80m, which has been achieved through organic growth.
Most recently, the group has invested in a new facility in Izoplit, Russia, enabling the expansion of existing sales into the rapidly growing Russian market.
Kari Lehtinen, CEO of Paroc, says: “The last five years have been successful, especially given the challenging economic backdrop and we are grateful to our former owners for their support during this period. We see a strong future for our business, with recovery in many of our markets expected in the coming years, and with our presence in the fast-growing Russian market. We look forward to taking Paroc forward in close cooperation with CVC, who are supportive of our strategy. CVC offer us a depth of experience and a strong track record with value-creating investments, expertise in the building materials sector and in the Nordic region. We are excited to share with CVC the next phase of our growth.”
