An under-pressure historic security printing firm has agreed to sell its authentication division for £300 million.
De La Rue plc, headquartered in Basingstoke and founded in 1821, produces secure digital and physical protections for goods, trade and identities in 140 countries. It sells to governments, central banks and businesses.
The anti-counterfeiting firm had come under pressure from activist investor Crystal Amber, its largest shareholder with a stake around 17%, which stated earlier this year that “the strategic value of De La Rue is substantially more than its operational value… it is now a highly attractive takeover target in an industry requiring consolidation”.
In 2020 it suffered the loss of a decade-long contract to print UK passports to Franco-Dutch company Gemalto and so focused on printing banknotes – it is the sole printer of UK sterling – but closed its factory in Gateshead less than a year ago.
In the year to 30th March 2024, the group saw its losses before tax narrow to £15.4m, compared with a £29.6m loss in the previous 12 months.
The cash deal with US rival Crane NXT was finalised following an “extensive and wide-reaching” sale process conducted by the company’s board, it said.
“The board views Crane NXT as a strong buyer for the authentication division, following its recent acquisition of OpSec, and recognises it provides an excellent fit for the authentication division’s people and customers,” De La Rue said in a notice to the London Stock Exchange.
The proceeds will create a more resilient and flexible group, it added, including the repaying of its existing revolving credit facility in full and reducing leverage to a net cash position.
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Completion of the transaction, expected in the first half of 2025, is subject to the obtaining of customary antitrust approvals.
Following completion, De La Rue is expected to comprise the group’s profitable currency division.
Clive Whiley, chairman of De La Rue, stated: “The sale of our authentication division to Crane NXT represents a substantial step forward on our route to realise the underlying intrinsic value of the De La Rue business for the benefit of all stakeholders.
“We are delighted to reach agreement with a company with the stature of Crane NXT, with its complementary strengths and are confident that the authentication division will continue to build on its considerable successes over the past few years.”