Insulation Firm Technoform Is Said to Weigh Majority Stake Sale

German insulation specialist Technoform Caprano + Brunnhofer GmbH is exploring the sale of a majority stake that could value it at more than 1 billion euros ($1.2 billion), according to people familiar with the matter.

The company’s owners are working with Goldman Sachs Group Inc. as they weigh options, the people said, asking not to be identified discussing confidential information. They could begin talks with potential buyers later this year, according to the people.

Germany is known for its privately-owned and highly-specialized mid-sized companies, known as the Mittelstand, which have become increasingly sought after by buyout firms looking to deploy ...