- Crane NXT buys De La Rue’s authentication arm
- Deal clears De La Rue’s debt issues
- De La Rue to focus on currency printing
Crane NXT, a New York-listed industrial technology business, completed the acquisition of De La Rue’s authentication section late Monday night.
An American predator is near to completing a £300 million acquisition of a division of De La Rue, the Bank of England’s banknote printer, signaling the end of the historic company.
On Monday night, Crane NXT, a New York-listed industrial technology company, was close to completing a buyout of De La Rue’s authentication arm on Monday night.
The acquisition will leave the London-listed company as a pure-play currency printer with over 40 global central banks as clients if approved.
According to sources, the deal’s worth will most certainly benefit De La Rue, whose balance sheet has been strained for years.
According to one source, the merger with Crane NXT would remove De La Rue’s debt while injecting an unspecified sum into the company’s pension program.
Last year, De La Rue was compelled to seek relief from its pension trustees by postponing millions of pounds in retirement contributions.
Shortly after, the company appointed Clive Whiley, a seasoned corporate troubleshooter, as chairman to rebuild its shattered finances.
De La Rue has been considering a breakup for months, and Crane NXT was in talks with Goldman Sachs about a potential bid for its authentication subsidiary.
As part of the process, it has invited offers for the entire company, though it was unclear on Monday night whether any such proposals had been received.
The authentication company mainly serves government clients, offering traceability software to detect fraud.
According to one source, De La Rue will not need to seek shareholder approval for the transaction under the updated UK listing regulations.
The move will fuel rumors that it may sell its currency division in the coming months.
Deutsche Numis bankers are reportedly advising De La Rue’s board on the authentication sale.
We contacted De La Rue and Crane NXT for comment.
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In recent years, the British corporation has been plagued by several corporate catastrophes, including earnings warnings, a public spat with its auditor, and difficulties in its operations in countries such as India and Kenya.
De La Rue originated in 1813 when Thomas De La Rue began a printing business.
According to the company’s official history, he began producing straw hats eight years before transitioning to stationery printing.
In 1860, it printed its first paper money for the Mauritius government, and when World War I broke out in 1914, it began making 10-shilling notes for the UK government.
On Monday, De La Rue shares closed at 94p, giving the business approximately £185 million market value.
Over the last year, its stock price has increased by more than 50%.
