Crown buyout 'good for business'

Akzo Nobel is selling Crown so it can buy ICI, which owns Dulux

The British buyout of Crown Paints heralds an exciting time for everyone in the Lancashire-based business, its new chairman says.

The deal, backed by UK investment fund Endless and thought to be worth £70m, was agreed with Dutch owner Akzo Nobel.

It will help secure jobs for 600 workers at the firm's headquarters in Darwen. Crown also has sites in Hull, Warrington, Belfast and Dublin.

Crown's new owners have promised "significant investment" in the firm.

Workers at Crown's UK sites were facing an uncertain future after the European Competition Commission ordered the sale of the business earlier this year.

It followed Akzo's £8bn purchase of Dulux-owner ICI, giving the group more than half the UK paint market.

'Sales growth'

Crown Paints has annual revenues of about £180m and 15% market share in the UK and Ireland.

Established almost 200 years ago, the company was famous for sponsoring Liverpool Football Club during the 1980s and currently sponsors Blackburn Rovers.

Crown chairman, Graham Hallworth, said: "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."

Mr Hallworth said the level of investment from Endless had put the business in a strong position to boost sales.

Endless managing director Warwick Ley said the Crown deal would be "supported by a significant level of investment behind the business".

The European Commission still has to give approval for the buy-out, which is expected within the next two months.