MUENSTER, Germany—European private equity firm PAI Partners and Lego Group majority stakeholder Kirkbi A/S have agreed to acquire German industrial foams maker Armacell International Holding GmbH.
As part of the agreement, details of which have not been disclosed, PAI will become a majority shareholder in the flexible foam maker, which supplies mainly to the equipment insulation market.
Kirkbi, which has been an investor in Armacell since 2016, will increase its stake in the company to a "significant minority position," according to a joint statement issued last month.
The move, according to Kirkbi, is in line with the company's investment strategy of being a long-term owner of market leading companies.
Based in Muenster, Armacell manufactures advanced engineered foams for technical applications—including commercial and residential building equipment—as well as equipment and solutions for the wind power, energy, industrials, transport, and sports and leisure sectors.
Patrick Mathieu will continue as chief executive officer of Armacell. PAI and Kirkbi said they were committed to supporting the company's objective of becoming "a global advanced material technologies leader."
Armacell has 24 manufacturing facilities worldwide and employs more than 3,000 people.
"I'm confident that PAI Partners' extensive experience in the industrials sector ... will prove to be a formidable partnership as we work to achieve this ambition," Mathieu said.
Headquartered in Paris, PAI has a long history of investing in the industrials sector and expects to drive Armacell's further expansion through product innovation and a number of strategic acquisitions, explained Mathieu Paillat, partner and Philipp Meyer, principal, PAI Partners.
A private investment company owned by Lego Group CEO Kirk Kristiansen's family, Kirkbi holds 75 percent of the Lego Group, 50 percent of Merlin Entertainments and has made investments in the renewable energy sector.