Crown Paints management buy-out estimated at £70m

Crown Paints was heading back into British hands today after a management buy-out worth an estimated £70m.

The deal – backed by UK investment fund Endless – has been agreed with Dutch owners Akzo Nobel.

Although the buy-out figure is not being officially disclosed, recent reports put the transaction’s value at £70m (€88m).

The sale comes after Akzo’s purchase of Dulux-owner ICI earlier this year for £8bn (€10bn), giving the group more than half the UK paint market.

The European Competition Commission forced Akzo to dispose of Crown Paints and various other paint-producing assets as part of the acquisition.

Crown Paints – whose brands include Crown, Sadolin and Sandtex – is headquartered in Darwen, Lancashire in England, and enjoys annual revenues of around £180m (€227.5m) in the UK and Ireland – about a 15% market share.

Its employs 1,500 people and operates two factories in Darwen and Hull, with strategic warehouse depots located in Dublin and Belfast and in Warrington, England. There are also 126 decorator centres across Ireland and the UK.

The firm’s history dates back nearly 200 years, and the company was famous for sponsoring the shirts of Liverpool football club during the 1980s. It currently sponsors Premier League rival club Blackburn Rovers.

Crown chairman, Graham Hallworth, said of the buy-out: “This is a very exciting time for everyone in the business as we return to independence.

“Crown is an extremely strong brand that is experiencing sales growth and it is essential that we remain competitive in current trading conditions.”

He added: “The robust funding structure we have put in place, supported by the significant level of investment from Endless, puts us in a strong position to increase sales further and take advantage of market opportunities.”

Endless manages £300m (€379m) of funds, with other investments including the discount book retailer The Works and electrical-goods retailer Homebuy.

The firm’s managing director, Warwick Ley, said the Crown deal would be “supported by a significant level of investment behind the business”.

The buy-out is subject to European Commission approval, which is expected within the next two months.