Former Liverpool FC sponsor in management buyout

Aug 3 2008

Managers of Lancashire-based Crown Paints are set to buy the business from its Dutch owner for £70 million, it was reported today.

Akzo Nobel is selling the brand in the UK and Ireland as part of its deal with the European Commission to gain approval for the £8 billion takeover of Dulux paints maker ICI, which was completed in February.

Managing director Howard Luft is close to sealing the deal for Crown Paints, backed by private equity firm Endless Investments, the Sunday Times newspaper says.

Endless is said to be ready to invest in Crown’s production facilities, and redevelop more than 100 Crown Decorating Centre paint-selling outlets.

The group has around 1,500 staff in the UK. Its factories in Darwen, Warrington, Hull, Belfast and Dublin are likely to remain open, the report said.

Crown is being sold because the ICI takeover gave Akzo control of more than half the UK paint market.

Under the terms of the deal with the Commission, the Dutch firm also agreed to sell smaller businesses such as masonry paints maker Sandtex as well as operations in Canada and Belgium.

Crown Paints famously sponsored top-flight football club Liverpool in the 1980s and has recently signed a three-year deal with Premiership team Blackburn Rovers, which begins next season.

Akzo Nobel declined to comment on the possible deal. Endless, which was unavailable for comment, has invested in other businesses including Birmingham-based discount book seller The Works.

ICI’s shares delisted from the London market six months ago following the Akzo takeover, ending 82 years of independence for arguably the most famous name in British industry.

Formed in 1926 from the merger of four chemicals firms, ICI counted Nobel Prize winners amongst its scientists and was responsible for advertising icons such as the Dulux paint sheepdog. It was the first British company to post more than £1 billion in full year pre-tax profits back in 1984.