23rd May 2016 06:26
LONDON (Alliance News) - Banknote printer De La Rue PLC on Monday said it has completed the sale of its Cash Processing Solutions Ltd subsidiary to CPS Topco Ltd, a company owned by private equity investor Privet Capital.
Cash Processing Solutions provides cash processing hardware, software and associated services used in banknote processing to manage banknote production, cash in circulation and the maintenance of banknote authenticity, condition and fitness, De La Rue said.
Following a review of the business, Cash Processing Solutions had been declared non-core to De La Rue's business, the company said. It has, however, entered into a strategic partnership with Cash Processing Solutions, details of which were not provided.
For the year to March 28, 2015, the business sold generated a GBP400,000 operating profit on GBP49.3 million in sales.
De La Rue got GBP2.1 million on completion and could be paid up to GBP6.5 million in total based on Cash Processing Solutions hitting performance targets in the two years following the deal.
"Following a root and branch review, we have concluded that whilst CPS has a good product profile and long term customer relationships, we do not believe that this is a business which should form part of our portfolio. The sale will enable De La Rue to focus on its core business and future growth areas, as well as allow CPS to achieve its full potential under the new ownership," said De La Rue Chief executive Martin Sutherland.
By Sam Unsted; [email protected]; @SamUAtAlliance
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