Lancashire-based Crown Paints is close to being bought by its management for £70 million, according to reports. Managing director Howard Luft is leading the MBO with the backing of private equity house Endless Investments.

The deal comes on the back of Akzo Nobel, Crown Paints Dutch owner, selling off the paint brand in the UK and Ireland in order to gain EU approval for its £8 billion mega-deal of paint-maker ICI, which was completed in February.

Together with Crown Paints, the ICI mega-deal, which led to its shares being delisted, gave Akzo Nobel control of more than half the UK paint market. The company is also being forced to sell its Berger, Macpherson, Permoglaze and Sandtex brands.

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

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