Decorative coatings manufacturer uses 'funding package' to help fuel growth.
Crown Paints Limited has secured a new £25 million funding package from the Royal Bank of Scotland. The funding will significantly increase the capital available to Crown's management team and underpin the Lancashire-based company's future growth plans.

Crown Paints chief executive Brian Davidson, commented: "This funding is excellent news for our employees, our suppliers and our customers. It's no secret that the past two years have been very difficult for manufacturers serving the construction and DIY markets, and Crown has been no exception. However, by implementing a wholesale restructuring programme, keeping a tight control on costs and adopting a more flexible and entrepreneurial culture, the company has weathered the storm and achieved a substantial improvement in performance.

"From a very strong asset base and a stable financial platform to build upon; this new funding from Royal Bank of Scotland will help us to invest in the business, react more rapidly to opportunities and grow our market share, not only here in the UK but also overseas where we are aggressively pursuing new export and licensing opportunities.

Since its buyout from Dutch coatings manufacturer Akzo Nobel in September 2008, backed by private equity firm Endless LLP, Crown has undertaken a major programme of reorganisation, which has seen it accelerate its return to profitability by strengthening the management team, improving efficiencies across the manufacturing process and growing the export sales side of the business.

Warwick Ley, Partner at Endless, said: "We are proud to be bringing Royal Bank of Scotland into our partnership with Crown Paints. The commitment and approach demonstrated by RBS during the refinancing has been first rate and is a strong sign of their intent in the market."

He added: "With the excellent trading progress to date and a strong foundation for the company to achieve its ambitious goals, we are now more excited than ever about the next chapter in this investment."

Chris Hawes, Head of Portfolio Management and Structuring at RBS Invoice Finance, added: "We are absolutely committed to supporting businesses like Crown and UK manufacturing in general, recently pledging £1 billion of new loans to the sector. We are delighted to have delivered an integrated working capital package, which will allow Crown to execute its medium-term business strategy.

"Our facility provides Crown with a flexible and substantial new funding line necessary to support the management team's growth plans over the course of the next few years. As the UK moves out of recession, Crown has seized the opportunity to build on its well-established brand and clear market position to grow market share in both its retail and trade divisions."