De La Rue PLC Announces Completion of Authentication Division Sale and Ongoing Discussions for Remainder of the Business
De La Rue PLC, a London-based international security paper business, has recently announced that it expects to complete the sale of its Authentication division to Crane NXT, a US-based technology company, next month. This sale, which is valued at £300 million, marks a significant milestone for De La Rue as it continues to restructure its business.
Conditions Met and Payment Terms
According to the company’s statement, all conditions related to the Authentication sale have now been met or waived. Crane NXT will pay £300 million in cash for the division, but £15 million will be held in escrow for up to 18 months following completion. Additionally, £30 million will be paid directly into De La Rue’s defined benefit pension scheme.
Discussions for the Remainder of the Business
De La Rue also confirmed that it is continuing formal discussions for the sale of the remainder of the business. The company did not provide further details on the potential buyer or the terms of the deal.
Impact on De La Rue and the Industry
The sale of De La Rue’s Authentication division to Crane NXT is expected to bring significant benefits to both companies. Crane NXT will gain access to De La Rue’s advanced security technologies and expertise, while De La Rue will be able to focus on its core business of security paper production.
For investors, the sale is a positive sign as it demonstrates De La Rue’s commitment to reducing debt and focusing on its core business. The proceeds from the sale will be used to pay down debt and invest in growth initiatives.
Impact on Consumers and the World
The sale of De La Rue’s Authentication division to Crane NXT is unlikely to have a direct impact on consumers, as the division primarily focuses on providing security solutions to governments and businesses. However, the consolidation of the security printing industry could lead to increased competition and innovation in the market.
From a global perspective, the sale underscores the growing trend towards digitalization and automation in the security printing industry. As more governments and businesses adopt digital solutions for identity verification and document security, the demand for traditional security printing services is expected to decline.
Conclusion
De La Rue PLC’s announcement of the sale of its Authentication division to Crane NXT is a significant development for the company as it continues to restructure its business and focus on its core competencies. The sale is expected to bring benefits to both companies and the industry as a whole, while also having potential implications for consumers and the world.
- De La Rue expects to complete the sale of its Authentication division to Crane NXT next month.
- All conditions related to the sale have been met or waived.
- Crane NXT will pay £300 million in cash, with £15 million held in escrow and £30 million paid into De La Rue’s pension scheme.
- De La Rue is continuing formal discussions for the sale of the remainder of the business.
- The sale is expected to bring benefits to both companies and the industry, while also having potential implications for consumers and the world.
