LUXEMBOURG—Armacell International S.A., a manufacturer of flexible insulation foams including rubber- and elastomer-based products, has completed a $617-million refinancing of the company's pending acquisition by Blackstone Group L.P. and Kirkbi a.s.
As part of the transaction, Armacell secured an additional liquidity reserve of $110 million, according to a statement earlier this month.
“We are pleased with the result of our capital raise,” Armacell CEO Patrick Mathieu said in a statement. “It is a reflection of our compelling investment case and of a continued blue-chip investor following of Armacell even in a volatile market environment.”
The refinancing was arranged by a pool of international banks led by Deutsche Bank. Based on the revised capital structure, Armacell is rated B (flat) by Standard & Poor's and B3 by Moody's.
The sale of Armacell to Blackstone and Kirkbi, which was announced in late November, is expected to close in the first quarter of this year.
With its 23 manufacturing plants in 16 countries on four continents, Armacell operates within two main businesses. The Advanced Insulation business develops flexible insulation foam products for the insulation of mechanical equipment, and the Engineered Foams business develops and markets light foams for use in a broad range of end-markets.
Armacell products are used as acoustic insulation, as gaskets and seals in a variety of modern car models or as central components of wind turbine blades.
In 2014, the company generated net sales of $498.4 million.