Crown Paints up for sale
Dutch group Akzo Nobel has put its UK Crown Paints business up for sale with a £200m (€251m) price tag, according to a report today.
The group is offloading the business under a deal agreed with the European Commission to gain clearance for its £8bn (€10bn) takeover of Dulux paintmaker Imperial Chemical Industries, completed in January.
Akzo has until late June to sell its Lancashire-based Crown business and has now reportedly appointed investment bank Greenhill to find buyers, according to The Sunday Times.
It is thought that the sale could attract the interest of US firms such as American buildings materials and coatings company Sherwin-Williams, as well as PPG Industries and RPM International.
The ICI deal saw Akzo take control of Britain’s top two paint manufacturers, with newly acquired Dulux the top player in the market, followed by Crown.
Crown is thought to employ around 1,400 people at three sites across the UK - its main site in Darwen, Lancashire, Warrington and Hull.
Sites in Dublin and Belfast are also understood to be up for sale as part of the EC agreement.
Akzo declined to comment on the sale price today, but confirmed the auction process had begun.
Akzo’s purchase of ICI marked the end of an era for what was an icon of British industry.
ICI delisted from the London market in January ending 82 years of independence and seeing one of the oldest constituents of the FTSE 100 Index disappear.
The Dutch firm said it was confident that the Dulux brand would be retained, but it was unclear if ICI as a name would survive.
Alongside the Crown sale, Akzo is also selling ICI’s adhesives and electronic materials business to German chemicals firm Henkel, which makes Persil washing detergent, for £2.7bn (€3.4bn).
