In February 2003, the fund Accent Equity 2000 (then: Nordico II), together with BA Capital Partners Europe, acquired Paroc from Industri Kapital and Kone.
Paroc is the second largest player in Europe within manufacturing and distribution of stone wool-based insulation material, with market leading positions in Finland and the Baltic Region. Operations are split into three product divisions: Building Insulation, Technical Insulation and Sandwich Panels.
At the time of the investment, Paroc had a turnover of EUR 279 million.
The fund and BA implemented a number of key initiatives to enhance Paroc’s strategic position:
- Strengthened the management team
- Divested non-core entities such as the non-core facilities in Skövde
- Implemented budgeting and reporting improvements – new cost controls and financial reporting systems
- Rationalised the product portfolio – focusing on high value added, high margin products
- Increased utilisation of low-cost production base and improved cost control
- Executed working capital improvement projects
- Sustained and enhanced market position by improving leadership in the Nordic region and Baltic states; development of the Sandwich Panel division into a market-leading pan-European business; strengthening the Technical Insulation division in Central Europe; and expansion of Paroc’s production units in Eastern Europe
During the fund’s and BA’s ownership period, the company increased its turnover to EUR 380 million as well as increased its EBITDA by 34%.
Following a successful auction process lead by Lazard, Paroc was divested to ARCapita in September 2006.