Buyout firm PAI Partners has engaged Lazard to guide a sale of portfolio company Armacell, three sources familiar with the matter said.

PAI aims to launch an auction for the Luxembourg-headquartered insulation material manufacturer as early as this month or in October, the sources said.

Armacell generates EBITDA of between EUR 160m-EUR 170m, according to two of the sources, with one of them noting these are the estimated figures for the financial year 2025. Another of the sources suggested an EBITDA range of EUR 170m-EUR 180m but did not specify for which period. The business generates revenues of about EUR 800m, two of the sources said.

Private equity firms have registered early interest in the business, the sources said, with a fourth source familiar with the company noting its attractiveness based on revenue security and spread of end markets.

Armacell develops advanced insulation and engineered foam products used in applications across the automotive, aerospace and medical industries, including commercial heating, ventilation and air conditioning (HVAC) equipment.

PAI announced the acquisition of a majority stake in Armacell from Blackstone in 2019. The deal value was not disclosed, though press reports at the time put it at around EUR 1.4bn. Investment firm KIRKBI and Armacell’s management team also retained stakes in the company, as per the deal announcement.

Founded in 2000, with its European head office in Munster, Germany, Armacell has a global manufacturing footprint across Europe, the US and Asia. Its products include flexible foam, recycled PET products, aerogel technology, and passive fire protection systems, according to the company website.

Representatives for PAI Partners, Lazard and Armacell declined to comment.