De La Rue sees shares jump after striking deal to sell its authentication arm
The bank note printer will sell the division to US firm Crane NXT for £300m.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Bank note printer De La Rue has seen its shares surge after announcing plans to sell its authentication arm in a deal worth £300 million, sparking the breakup of the firm.
Shares in the 200-year-old group jumped 15% in afternoon trading on Tuesday as it revealed the proposed sale to US-based firm Crane NXT.
It comes after De La Rue cautioned in July over its ability to continue as a going concern due to the payment of a loan due in July next year.
The sale of our authentication division to Crane NXT represents a substantial step forward
De La Rue said at the time it was hoping the sale of its authentication arm would allow it to repay the loan, but that there was uncertainty over the timing of any potential deal.
The deal announced on Tuesday will allow it to repay the loan “in full”, while also helping reduce the funding deficit on its former defined benefit pension scheme, according to De La Rue.
Clive Whiley, chairman of De La Rue, said: “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.”
He added: “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 Saak, Crane NXT’s president and chief executive, said: “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.”
The deal is expected to complete in the first half of 2025.
De La Rue remains in talks with suitors over the sales of its currency business.
De La Rue – which prints banknotes for the Bank of England and other central banks across the world – put its divisions up for sale after a strategic review launched at the end of last year, revealing in May that it was in discussions with a number of possible bidders.
It followed a difficult time for the Basingstoke-based group, which has been hit as demand for notes slumped after banks globally stockpiled cash during the pandemic, while online banking and contactless payments have soared in popularity.