Historic Currency Printer Takes a Bold Leap: US Firm Acquires De La Rue for £263m

De La Rue, a prominent currency printer founded in Guernsey 212 years ago, has reached an agreement for a £263 million takeover by the US investment firm Atlas Holdings. This significant deal, involving a cash offer of 130p per share, represents a 19% premium over De La Rue’s closing price prior to the offer, highlighting a shift in the company’s ownership structure as it transitions to private equity for the first time.

Founded by Thomas De La Rue in the early 1800s, the company has been a key player in printing banknotes for 140 jurisdictions, including the UK, Guernsey, and Qatar. However, De La Rue has faced challenges in recent years, notably losing the UK government contract for post-Brexit passport printing to a Franco-Dutch company in 2018. This setback led to forecasts of potential collapse unless a strategic turnaround plan, launched in 2020, could prove successful.

As part of the turnaround efforts, De La Rue has made significant moves, including the sale of its Authentication division for £300 million, set to be completed by May 2025. The funds from this sale are expected to bolster the company’s financial position by repaying loans and addressing a pension deficit. The entire acquisition process is anticipated to finalize by the end of September, signaling a new chapter for the historic company.