De La Rue agrees £263m takeover by US investment firm Atlas

(Sharecast News) - Banknote printer De La Rue said on Tuesday that it has agreed to be bought by US investment firm Atlas in a £263m deal. Under the terms of the acquisition, Atlas will pay 130p per share, which is a premium of approximately 19% to the closing share price on 11 December 2024, the last day before the start of the offer period.

De La Rue chief executive Clive Vacher said: "De La Rue has undergone a fundamental transformation since 2020, in which we have successfully delivered on our turnaround plan to create more efficient and agile operations, while enhancing profitability in our industry-leading currency business as demonstrated by the strength of our order book.

"Atlas is the right partner to take De La Rue into its next phase of growth. Most importantly, under Atlas's ownership we can ensure long-term stability for our customers and our people, and best position the business for its next chapter. I look forward to working closely with Atlas and both our teams to deliver on this exciting opportunity for De La Rue."

At 0940 BST, the shares were up 17.4% at 131.50p.

Steve Clayton, head of equity funds at Hargreaves Lansdown, said: "De La Rue is in the process of selling off its Authentication division, so Atlas will be acquiring a pure-play currency operation. The deal represents a premium of 19% to the share price immediately before the deal was first mooted and more than three times the level that the shares had sunk to in mid-2023.

"Investors will be relieved perhaps to see such a recovery. But those with longer teeth are more likely to remember that De La Rue's directors fought off an approach by French rival Oberthur back in 2010, an approach that was valued at over 900 pence per share. Whoops."