Law firm Eversheds has advised the management team of Paroc Group on its acquisition by CVC Capital Partners, for an Enterprise Value of approximately €700 million.
Headquartered in Helsinki, Paroc is the leading 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, a pan-European sales presence, supported by 9 production facilities in Finland, Sweden, Lithuania, Poland and Russia.
In a successful 5-year period under the ownership of its current shareholder group, Paroc has grown its revenues from €317m (in 2009) to €433m (in 2013), and EBITDA from €46m to €80m, which has been achieved through organic growth. The development of the group’s higher-value, higher-margin technical insulation division, aided by investment in the group’s production facility in Trzemeszno, Poland, has represented one of the group’s success stories during this period. 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.
The Eversheds team was led by partner Richard Moulton, assisted by Principal Associate Wyn Jones and Senior Associate Andrew Overend. Richard commented:
“This is a significant deal which will assist Paroc in boosting its growth and expanding its capabilities. We wish them continued success as they enter into a new phase of the business.”
Kari Lehtinen, CEO of Paroc, commented:
“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.”
Source: press.eversheds.com
