Carlyle and Advent flip building company

Investment company Arcapita has bought window and door company HT Troplast from The Carlyle Group and Advent International two years after the firms bought the company.

Buyout firms The Carlyle Group and Advent International have sold HT Troplast,the window and door company to Bahrain-based Arcapita bank. Terms were not disclosed, but a source close to the deal said it had been sold for around €800 million ($1.1 billion).  

Turnover from 2004 to 2006 grew at double-digit rates, generating net sales of more than €800 million in 2006. The buyout firms also increased the company’s profitability, which had been below industry benchmarks.

The business was repositioned through the sale two non-core divisions in 2005. The buyout firms sold foam product company Trocellen to Furukawa Electric and Otsuka Chemical as well as selling vulcanised fibre company Dynos to M2 Capital Partners.

The company has established strong regional positions in central and eastern Europe where it has more than 50 percent of its revenues. Advent acquired a 45 percent stake and Carlyle a 55 percent stake from Ruetgers in 2005 for €300 million.

The acquisition is Arcapita’s largest in the building material sector, after buying Finnish company Paroc last year for €620 million as well as the US and UK arms of Tensar for $514 million (€382 million).

Arcapita’s corporate arm operates like a private equity buyer. However, it does not raise funds but instead it makes transactions on its own balance sheet and syndicates the investment to buyers across the Middle East.

Financing for the deal was provided by an undisclosed Western bank, according to the group’s spokesman.