Financial institution of England foreign money printer De La Rue maps sale to buyout agency Atlas

The corporate which prints banknotes for the Financial institution of England is getting ready to an historic takeover that will see it owned by personal fairness buyers for the primary time because it was based 212 years in the past.

Sky Information has learnt that Atlas Holdings, a US-based buyout agency, is in superior talks a couple of 130p-a-share supply for De La Rue.

The London-listed firm’s main buyers are understood to have been requested to offer irrevocable undertakings to simply accept the supply, with one shareholder saying {that a} deal advisable by De La Rue’s board was prone to be introduced as early as Tuesday morning.

If accomplished, a takeover deal would finish practically 80 years of De La Rue’s standing as a London Inventory Alternate-listed enterprise, having made its public firm debut in 1947.

Among the many companies it owns in Europe are London-based graphic and artistic companies company ASG and Bovis, a British building companies group.

Banking sources mentioned the 130p-a-share supply for De La Rue would symbolize a strong premium to a value which sank beneath 50p in mid-2023, however which has since recovered to shut at 112p on Monday night.

Atlas Holdings is known to have drafted in bankers from Lazard to advise it, whereas De La Rue is being suggested by Deutsche Numis.

The supply from Atlas Holdings doesn’t embrace De La Rue’s authentication division, which is being offered to US-listed Crane NXT in a £300m transaction which took an extra step in direction of completion final week.

The proceeds from that deal have been earmarked to repay loans and cut back its pension scheme deficit.

De La Rue’s foreign money arm prints cash for a lot of central banks world wide, together with within the Americas, Asia, Africa and Europe.

It has printing websites within the UK, Kenya, Malta and Sri Lanka.

In 2020, the Financial institution of England introduced that it had prolonged De La Rue’s contract from the tip of 2025 till 2028.

On the time, there have been 4.4bn Financial institution of England notes in circulation with a collective worth of about £82bn.

De La Rue has been operating a proper sale course of beneath Takeover Panel guidelines, with a string of events mentioned to have expressed an curiosity in it because the interval started late final 12 months.

Amongst its potential suitors has been Edi Truell, the outstanding Metropolis financier and pensions entrepreneur, who tabled a 125p-a-share proposal in January.

De La Rue’s administrators have been exploring choices in latest months to maximise worth for long-suffering shareholders, together with a standalone sale of the currency-printing enterprise or different proposals to accumulate the complete firm.

The group’s steadiness sheet has been beneath pressure for years, with doubts at one level about whether or not it might stave off insolvency.

After being beset by a sequence of company mishaps, together with a string of revenue warnings, a public row with its auditor and challenges in its operations in nations together with India and Kenya, it was pressured to hunt respiration house from pension trustees by deferring tens of hundreds of thousands of kilos of funds into its retirement scheme.

Quickly after that, the corporate parachuted in Clive Whiley, a seasoned company troubleshooter, as chairman, with a mandate to restore its battered funds.

Since then, its inventory has recovered strongly, and is up 37% during the last 12 months.

De La Rue traces its roots again to 1813, when Thomas De La Rue established a printing enterprise.

Eight years later, he started producing straw hats after which moved into printing stationery, in response to an official historical past of the corporate.

Its first paper cash was produced for the federal government of Mauritius in 1860, and in 1914 it started printing 10-shilling notes for the UK authorities on the outbreak of the First World Struggle.

De la Rue has been contacted for remark, whereas Atlas Holdings couldn’t be reached for touch upon Monday night.