A 200-year-old company which listed on the London Stock Exchange in 1947 is set to be acquired by a US buyout firm in a deal worth £273m.
Under-pressure historic security printing firm 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.
Last year De La Rue came under pressure from activist investor Crystal Amber, its largest shareholder with a stake around 17%, which stated earlier in the 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”.
Atlas, a long-term investor in sectors including printing, pulp and paper, automotive components, food production, power generation and construction, has now agreed terms on a deal for 130 pence in cash per share for the currency division of the business.
The acquisition represents a premium of approximately 19% to the closing price of 110p per share on 11th December 2024, the last business day before the commencement of an offer period which saw several approaches made for the currency division.
It does not include De La Rue’s authentication division, which is being sold to US rival Crane NXT in a £300m deal agreed last year. De La Rue said today that this deal is set to complete on 1st May 2025.
In 2020 De La Rue 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 in 2023.
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.
Atlas and its affiliates have control investments in a diversified group of 27 manufacturing and distribution businesses which generate combined revenues of approximately $18bn annually and employ more than 57,000 people across 350 facilities worldwide. It has offices in the US, the UK and the Netherlands.
De La Rue’s directors are recommending unanimously that shareholders vote or procure votes in favour of the scheme.
“De La Rue has undergone a fundamental transformation since 2020, in which we have successfully delivered on our turnaround plan to create more efficient and agile operations, while enhancing profitability in our industry-leading currency business as demonstrated by the strength of our order book,” said Clive Vacher (pictured), CEO of De La Rue.
“Atlas is the right partner to take De La Rue into its next phase of growth. Most importantly, under Atlas’s ownership we can ensure long-term stability for our customers and our people, and best position the business for its next chapter. I look forward to working closely with Atlas and both our teams to deliver on this exciting opportunity for De La Rue.”
Clive Whiley, chairman of De La Rue, added: “I am very pleased for all De La Rue stakeholders today. In a little under two years since I joined De La Rue, we have made profound changes which have benefitted all stakeholders.
“This offer from Atlas being announced today is the final step in this successful process – through the stabilisation of that initial position, the strategic review and transactional action plan, and culminating in the disposal of the authentication division and ultimately this cash offer – securing full and complete value realisation and security for all of today’s stakeholders across our financiers, pension trust, employees and shareholders.
“I wish to thank them all for their support through this period and I know that under Atlas ownership, De La Rue has a strong and stable future ahead.”