Crown Paints has been sold to Danish coatings manufacturer Hempel for a sum thought to be more than £100m less than three years after its last acquisition.
Hempel has promised to develop the business in the UK and Ireland, retaining all of the brands and entire product range as well as continuing a commitment to best in class sustainability measures.
Lancashire-based Crown, which has ranges of interior and exterior wood coatings, was last acquired in 2008 from Akzo Nobel by management backed by turnaround specialist Endless.
The team achieved a successful turnaround of the previously loss-making business, going on to record profits of £20m off £180m sales last year and increasing Crown’s market share for the last three years.
“This deal marks the next milestone in Crown Paints’ illustrious history and signals the next phase in our exciting and ambitious growth plans,” said Crown Paints chief executive Brian Davidson.
“This deal is of mutual benefit to the prosperity of both companies. Hempel recognises the talent, mature infrastructure and strong customer base that we have in our business, and is committed to developing Crown Paints’ brands in the UK and Eire. In return, we will use our well-developed industry know-how and market position to support the growth of Hempel’s existing decorative businesses.”
Global coatings supplier Hempel supplies products to the decorative, protective, marine, container and yacht markets in more than 80 countries. The company recorded profits of €92m from €889m sales in 2010.
Hempel acquired Crown Paints as a result of the latter’s solid year-on-year growth and as part of its One Hempel – One Ambition strategy to double the size of the company over the coming years, in part by developing its presence in the global decorative coatings industry.
“Crown Paints represents everything we were looking for – from a solid position in the market and strong financial situation, to innovative R&D and marketing,” said Hempel CEO Pierre-Yves Jullien.
