THE management team of specialist coatings business Tor is buying back the firm they sold to a European rival in 1996.

The team, led by chief executive Colin Carter and non-executive chairman Guy Readman, will pay European Colour £13m for the business, based on the Portobello Industrial Estate, in Birtley, County Durham.

The company has a turnover of £11.5m and backing for the deal is being organised by the Bank of Scotland.

Mr Carter, 42, said: "This is a wonderful opportunity for Tor Coatings, the management team and all its employees.

"Pre-tax profits were about £2m last year and our prospects have never been brighter. Not only do we have an enviable blue chip client list, but an experienced and committed management team that will seek further acquisitions."

He added: "When the opportunity came to buy back Tor we didn't hesitate for a moment.

"Six years as part of a small plc has taught us a lot, but being part of a small plc in today's stockmarkets has been financially restricting."

The enthusiasm for the buy-back has been emphasised by the fact that 32 managers and staff have invested between £5,000 and £100,000 in the deal.

Tor Coatings has two main divisions. The brand division provides specialist coatings to a range of industries, including anti-graffiti and hygiene coatings. In the past it has provided paint for the Sultan of Brunei's palaces and Big Ben and anti-climb paint for the Tyne Bridge.

The company was founded in 1976 by Guy Readman, Alan Turner and Gordon Carr. Colin Carter joined the business in 1977 as a production trainee.

Mr Carter left in 1987 to set up a rival paint company, which was eventually bought out by Tor in 1993. In 1995 he became chief executive of the enlarged company.

It is the fourth time that Mr Readman has been involved in the sale of the business.

He first sold Tor Coatings to Barrow Hepburn in 1986 for £4m. Barrow Hepburn was then taken over and Mr Readman took the opportunity to buy back Tor in 1989.

Seven years later, in 1996, he received an offer from European Colour to sell the business for £14.3m.