Decorative divestment

AkzoNobel is to sell its Crown Paints decorative paints business in the UK and Ireland to Endless, an independent private equity house.

It has also agreed a deal to sell two of its Belgian brands to Rieu Investissements, a Paris-based manufacturer of coatings for industrial and consumer applications.

The divestments are the direct result of an agreement the company reached with the European Commission in connection with its acquisition of Imperial Chemical Industries in January 2008.

In the UK and Ireland, the sell off includes the Crown Paints' manufacturing and warehouse sites in Darwen, Hull, Warrington, Dublin and Belfast, as well as the Crown Decorator Centre network and its Crown, Crown Trade, Berger, MacPherson, Permoglaze and Sandtex brands.

It also includes the company’s export activities related to these brands and a license for the use of its Sadolin brand in the UK and Ireland.

On the Belgian front, AkzoNobel will sell its DeKeyn and Linitop brands to Rieu Investissements in a deal that also includes a license for the use of its Sadolin brand in Belgium for a period of five years. The French company has also bought AkzoNobel's stake in Owatrol International and related intellectual property.

Both the deals, which are still subject to the approval of the European Commission, are expected to be completed in the third quarter of 2008. No financial details of either were disclosed.