By Elena Vardon

De La Rue agreed to be taken over by U.S. buyout firm Atlas Holdings in a deal that values the banknote printer at around 263 million pounds ($347 million).

The London-listed group said Tuesday that Atlas was offering it 130 pence in cash for each of its shares, representing a 16% premium to Monday's closing price of 112 pence.

De La Rue launched a formal sale process earlier this year and reviewed several proposals before deciding that the one put forward by Atlas was aligned with its aim of addressing the interests of all stakeholders.

The company's directors intend to recommend unanimously that its shareholders vote for the offer, it said.

"In De La Rue, we see a company that is an industry leader, but one which has faced multiple challenges in recent years...As a private company, not bound by periodic public reporting, we will be able to focus on the optimal long-term strategy," Atlas's Peter Bacon said.

The deal covers the company's currency division, which designs and manufactures banknotes, and is set to close in the third quarter of this year, subject to some conditions.

Its other unit, the authentication division, is being sold to industrial technology company Crane NXT for 300 million pounds, as agreed in October. That transaction that is expected to complete on May 1.

Write to Elena Vardon at elena.vardon@wsj.com

(END) Dow Jones Newswires

By Elena Vardon

British banknote printer De La Rue agreed to a 263 million-pound ($347 million) takeover by U.S. buyout firm Atlas Holdings, signaling the end of its nearly 80-year listing on the London Stock Exchange.

Atlas is offering 130 pence in cash for each De La Rue share, which is a 16% premium to Monday's closing price of 112 pence, it said Tuesday. The stock jumped in morning exchanges to roughly match the offer price.

De La Rue, which was founded more than 200 years ago and has been listed in London since 1947, prints bills for the Bank of England and other central banks. Following a series of challenges in recent years, including the loss of its contract to make British passports in 2018, it has been working on a turnaround plan and launched a formal sale process earlier this year.

"The board has considered all of its options and landed in what we believe is a really good future owner for the business," Chief Executive Clive Vacher said in an interview.

De La Rue said its board met Monday and considered an improved offer of 132.17 pence a share from U.K. businessman Edmund Truell via Disruptive Capital GP and Pension SuperFund Capital, but that it decided to unanimously recommend its shareholders vote to accept the Atlas deal. In January, Truell made an offer of 125 pence a share.

De La Rue--which has printing sites in the U.K., Kenya, Malta and Sri Lanka--is seeing strong demand for bills as it is positioned at forefront of the transition from paper to polymer banknotes.

The group handles everything from design, to technology and operations, which is why its order book is currently at record levels, Vacher said.

Meanwhile, the business is shielded from the impact of recently-announced U.S. tariffs and hasn't noted any adverse effects, he said.

Atlas will bring strong financial backing to help De La Rue realize its growth ambitions and ensure continuity, Vacher said, highlighting the U.S. group has 27 manufacturing and distribution businesses that it allows to operate as independent entities. De La Rue will be able to continue executing the strategy it has been working on for over five years with its current management team, employees and locations, he said.

The transaction, which only covers the company's currency division, is set to close in the third quarter of this year, subject to approvals. De La Rue's other core business, the authentication unit, is being sold to industrial technology company Crane NXT for 300 million pounds, as agreed in October. The proceeds from the authentication sale, which is expected to complete on May 1, will be used to pay down its debt and reduce its pension deficit.

Write to Elena Vardon at elena.vardon@wsj.com

(END) Dow Jones Newswires

April 15, 2025 06:14 ET (10:14 GMT)

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