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Private equity funds bid for Finnish insulation firm Paroc, say sources-Reuters

(Reuters) – Private equity funds TPG, Nordic Capital, CVC and Cinven are among those to have put in first-round bids for Finnish insulation material maker Paroc, five sources familiar with the matter said on Friday.

First-round bids were due last week. One source said the bids from the private equity funds ranged from about 700 million euros ($937 million) to 750 million euros.

Reuters reported in February that Lazard was running the sale. Lazard and the private equity firms declined to comment. Paroc was not immediately available to comment.

Paroc is owned by a consortium of banks and institutional investors, which is whittling down bidders for a second round.

The company is pursuing a growth strategy in Russia, one source said.Paroc was taken over by its lenders from Bahrain-based investment firm Arcapita in 2009.

Lazard also advised on the 2006 sale of Paroc to Arcapita and its 2009 debt restructuring, after global construction slumped during the financial crisis and Paroc’s sales dropped by almost 30 percent.