LONDON: De La Rue Holdings has entered into a definitive agreement for the sale of the group’s Authentication Division to Crane NXT for a cash consideration representing an enterprise value of £300 million.
De La Rue’s Authentication division provides physical and digital security solutions for governments and businesses to protect their citizens, revenues, and reputations.
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.
Proceeds will create a more resilient and flexible Group, by repaying the Group’s existing revolving credit facility in full and reducing leverage to a net cash position; and significantly reducing the deficit on the Group’s legacy defined benefit pension scheme by paying £30m as an accelerated contribution on completion.
The Group has also agreed to pay an additional £12.5m in deficit repair contributions to the Pension Scheme over the period to April 2027, which will further reduce the Pension Scheme deficit
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.
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 Officer, 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.”