De La Rue sells off Cash Systems divisions in 360m deal
Monday, June 16, 2008
De La Rue has entered into a conditional agreement to dispose of its Cash Systems business to private equity house The Carlyle Group for 360m.
The deal, which is subject to shareholder approval, is expected to complete in September of this year and brings to an end months of speculation concerning the possible purchaser for the business.
Nicholas Brookes, chairman of De La Rue, said: "The disposal of Cash Systems, in the more uncertain economic environment, reflects the quality of the business that we have built since 2004 and crystallises its value for our shareholders."
The disposal of Cash Systems will enable De La Rue to focus on its core business as a supplier and manufacturer of banknote printing. In a statement, De La Rue said that a focus on this segment of the business will deliver higher margins.
Cash Systems manufactures and distributes handling technology for the authentication and sorting of bank notes, including ATM machines, which De La Rue invented in 1965.
For the financial year to March 2008, the company reported revenue of £286.6m and operating profit of £35.5m.