12th Dec 2016 15:17
LONDON (Alliance News) - Banknote printer De La Rue PLC Monday said it has agreed to buy the authentication business of DuPont Electronics & Communications for USD25.0 million in cash.
De La Rue said that this acquisition was in line with its five-year plan to transform its business into a technology-led security product and services provider, with DuPont Authentication strengthening several product lines and providing a platform to create new applications for the currency market.
DuPont Authentication is based in Utah in the US, has around 40 employees and is expected to generate around USD14 million of revenue for 2016.
The acquisition is expected to completed by the end of the year, and is expected to add to earnings in its first year after completion.
"We are delighted to have made further progress against our 2020 strategic plan by adding DuPont Authentication to the De La Rue family. It is a business with a strong intellectual property portfolio, global blue-chip customers and a committed and experienced workforce," said De La Rue Chief Executive Officer Martin Sutherland in a statement.
"DuPont Authentication's market leadership in holographic security features, technology expertise and production capabilities will complement our existing technology platform. Its combination with our brand's global reach and strong sales resources will also ensure a route to multiple new opportunities for DuPont Authentication and its employees," Sutherland added.
Shares in De La Rue were up 2.2% at 593.00 pence Monday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
De La Rue