Private equity group Investcorp is considering the sale of Armacell, one of the world's leading makers of insulation materials, aiming to capitalise on the growing need for energy efficient products, people familiar with the situation said.

A sale of the company could attract large industrials groups like 3M and fetch Investcorp more than 300 million euros ($364 million), two of the people said.

A sale of Armacell, which was spun off by Armstrong World Industries in 2000 and now has some 2,500 employees worldwide, could also attract the likes of rubber and polymers maker Hutchinson Worldwide and foams and plastics group UFP Technologies, the people said.

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