Industri Kapital, the European private equity firm, has sold its stake in Paroc, an insulation manufacturer based in Finland and Sweden, to Banc of America Equity Partners Europe.

The acquisition has been made from Banc of America Equity Partners Europe's third fund, which it is still in the process of raising, with a target of €600m ($600m). Wojciech Goc, the firm's managing director, said Paroc, its third acquisition in the Nordic region since 1998, reflects its "strong commitment to the Scandinavian buy-out market".