15th Apr 2025 12:00
(Alliance News) - De La Rue PLC on Tuesday accepted a takeover offer from US private equity firm Atlas Holdings LLC, preferring it to a rival bid from Disruptive Capital GP Limited and Pension SuperFund Capital.
The Basingstoke-based firm, which prints banknotes for the Bank of England and other central banks across the world, said the GBP263 million cash offer from Atlas is worth 130 pence per share.
In further statement, De La Rue said it had received a further proposal from PSFC worth 132.17 pence per share.
PSFC proposed a securities exchange offer, exchanging De La Rue ordinary shares for unlisted loan notes in a PSFC vehicle that may be redeemed for cash.
But De La Rue said it had weighed the "preliminary and conditional nature" of the PSFC proposal, including the absence of committed financing and determined to recommend the all-cash offer from Atlas.
De La Rue also noted uncertainty in relation to the deliverability of the PSFC transactional structure and pension arrangement.
In response, shares in De La Rue rose 16% to 129.54p each.
In February, De La Rue said it had started a formal sale process after receiving approaches from separate third parties.
In January, the firm said Disruptive Capital GP Ltd and Pension SuperFund Capital had offered to buy the company for 125p per share. In February, the company said it had also received preliminary approaches from separate third parties.
On Tuesday, De La Rue said it had "carefully reviewed" a number of other proposals with its advisers and "unanimously concluded" that the Atlas acquisition achieves the "critical objective of delivering an outcome that satisfactorily address the interests of all stakeholders."
De La Rue Chief Executive Clive Vacher said on Tuesday: "Atlas is the right partner to take De La Rue into its next phase of growth. Most importantly, under Atlas's ownership we can ensure long-term stability for our customers and our people, and best position the business for its next chapter."
Greenwich, Connecticut-based Atlas focuses on acquiring companies in sectors including industrial services, automotive, metals and energy.
Among the businesses it owns in Europe are London-based graphic and creative services agency ASG and British construction services group, Bovis.
Atlas said it believes that the acquisition of De La Rue represents an "attractive opportunity" to build on its portfolio of manufacturing and key infrastructure businesses.
Atlas said it has entered into a memorandum of understanding with the pension trustee of De La Rue to provide protection to the members of the DLR DB Pension Scheme, while giving De La Rue the ability to operate its business outside of its current capital constraints.
Atlas said it has received irrevocable undertakings from investors representing 40% of De La Rue's shares. This includes the backing of Aberforth Partners LLP which speaks for 11% of De La Rue stock.
De La Rue, founded in 1821, made its London stock market debut in 1947.
The acquisition is expected to be completed during the third quarter of 2025.
By Jeremy Cutler, Alliance News reporter
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