Historic banknote printing business De La Rue is to sell its authentication division for £300m.
The company’s wholly owned subsidiary, De La Rue Holdings, has entered into an agreement to sell the division to US industrial technology firm Crane NXT.
The division helps protect customer revenues and reputations from counterfeiting, illicit trade and identity theft, leveraging its advanced digital software solutions and security labels to protect billions of unique products.
The sale of the authentication division to Crane NXT at an enterprise value of £300m will allow De La Rue’s revolving credit facility to be repaid in full and cancelled. The outstanding deficit on the De La Rue pension scheme will be substantially reduced by payment of a pension deficit repair contribution of £30m on completion.
Following the transaction, De La Rue will comprise its profitable currency division, with net cash on its balance sheet
Clive Whiley, chairman of De La Rue, said: “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.
“Completion of the sale will allow us to repay our existing revolving credit facility in full ahead of its maturity on 1 July 2025 and will provide a springboard to unlock further intrinsic value as we move to find a long-term funding solution for the Group’s legacy defined benefit pension scheme. In addition, we will be able to focus fully on building and growing our world-leading currency business.”
Aaron W Saak, Crane NXT’s president and chief executive, added: “The acquisition of De La Rue Authentication accelerates our strategy as a market leader in providing trusted technology solutions that secure, detect and authenticate our customers’ most valuable assets.
“Protection from counterfeiting and illicit trade is a priority for governments and leading commercial product brands. This acquisition expands our technology capabilities and will drive profitable growth in new markets.”
