FRANKFURT, Jan 29 (Reuters) - The sale of German insulationfirm Armacell by its Bahrain-based private equity ownerInvestcorp has attracted six bidders as interest grows incompanies making energy-efficient products, two people familiarwith the transaction said.
Private equity investors Charterhouse, Pamplona,Equistone, HgCapital, Goldman Sachs Private Equity as well as a U.S.-based producer of building materialshave placed tentative bids, the people said, adding final bidsare due in mid-March.
The offers value Armacell, which makes insulation materials,at 400 to 500 million euros ($538-$673 million), a discount tothe valuations of peers, the people said.
Last year, Armacell Chief Executive Patrick Mathieu had toldReuters: "Our peers trade at (EBITDA) multiples of 7-9. We seeourselves at the higher end of this range."
If it was valued in line with peers, Armacell would fetch aprice tag of 490 to 630 million euros as it expects to postearnings before interest, tax, depreciation and amortization(EBITDA) of 70 million euros this year.
The seller may, however, still book a gain on the sale.According to media reports, Investcorp bought Armacell for350-400 million euros in 2006.
Germany-headquartered Armacell says it is the world'slargest maker of flexible insulation, claiming 40 percent of themarket, with its products used to lag pipes and ductwork inlarge buildings such as factories and schools.
The company has annual sales of about 440 million euros, 60percent of which stem from outside of Europe.
Investcorp declined to comment, while the bidders were notimmediately available for comment.