INDIANAPOLIS--Permira, a leading international private equity firm, announced that a new holding company formed by the funds it advises has signed a definitive agreement to acquire Aearo Technologies Inc., a leading designer, manufacturer and marketer of personal protective products and energy absorbing composites for approximately $765 million.

Aearo is currently majority owned by Bear Stearns Merchant Banking, together with an investor group including Aearo’s management. Based in Indianapolis, the company posted revenues of more than $420 million in 2005, according to a company statement.

Aearo features a portfolio of global brands such as AOSafety, E-A-R, Peltor and SafeWaze. AOSafety produces prescription and non-prescription safety eyewear.

As part of the transaction, which is subject to financing, regulatory approvals and other customary closing conditions, Aearo management will acquire a stake of approximately 10 percent in the newly formed holding company and will be granted additional ownership through an option plan. The existing chairman and chief executive officer, Michael A. McLain, will continue to lead Aearo, along with his existing management team.

“We are excited to partner with Permira to take advantage of the significant strategic opportunities for the expansion and development of our business,” said McLain. “Our employees worldwide have worked hard to achieve leading market share positions through innovation and new product development. Our new partnership will enhance these efforts. With Permira’s strategic guidance, international reach and investment capital, Aearo will be even better positioned to accelerate its growth and strengthen its market positions. This partnership will present a number of exciting opportunities for the customers and employees of Aearo in the years ahead.”

Thomas H. Lister, of Permira, said: “Aearo Technologies fits squarely within the Permira Funds’ investment criteria: a rapidly growing international business with a superb management team and significant cash flow. This acquisition reflects our desire to continue to build a diverse international investment portfolio that builds on our European roots. Aearo’s CEO Mike McLain and his team have created strong brands and achieved tremendous growth, and we look forward to working with them to build upon the success of Aearo’s businesses worldwide.”

In November, 2005, Aearo announced that it was planning an initial public offering of as much as $230 million in common stock. The company’s prescription safety eyewear segment posted net sales for the fiscal year ended September 30, 2005 of $39.4 million, accounting for approximately 9.3 percent of Aearo Technologies’ annual sales. Aearo’s total net sales for the year rose 16.7 percent overall to $423.5 million from $362.8 million.

Permira, which has offices in Frankfurt, London, Madrid, Milan, New York, Paris, Stockholm and Tokyo, advises the Permira Funds with a total committed capital of Euro 11 billion. Among its holdings, Permira owns 85 percent of the German optical company Rodenstock.