15th Oct 2024 10:14
(Alliance News) - De La Rue PLC on Tuesday said it now has signed an agreement to sell its Authentication division, having been working on a disposal of either that business or its Currency arm since at least July.
The Basingstoke, Hampshire-based De La Rue provider of authentication software and currency printing services said the planned sale to Crane NXT Co represents an enterprise value of GBP300 million.
De La Rue expects the sale to complete during the first half of 2025.
De La Rue shares jumped 13% to 106.24 pence each on Tuesday morning in London, giving the company a market capitalisation of GBP207.8 million.
The company said the sale "realises significant capital and provides cash to the group for the benefit of all stakeholders by unlocking the intrinsic value of the Authentication division."
This cash will be used to repay debt and reduce the deficit on Del La Rue's legacy defined-benefit pension scheme. It also will create "flexibility" for the board "to determine the best option to maximise the intrinsic value of the Currency division".
Buyer Crane NXT is a Stamford, Connecticut-based provider of advanced technologies and services.
Crane NXT Chief Executive Officer Aaron Saak said: "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."
By Tom Budszus, Alliance News slot editor
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