De La Rue, the British Banknote Printer, Agrees to Be Bought by Atlas Holdings for 263 Million Pounds
In a surprise move, De La Rue, the UK’s leading commercial banknote printer, announced on Tuesday that it had agreed to be bought by U.S.-based buyout firm Atlas Holdings. The deal, which values De La Rue at 263 million pounds ($347.1 million), is expected to complete by the end of the year.
Background of De La Rue
De La Rue, founded in 1819, has a rich history in the production of banknotes, passports, and other security products. The company has been the supplier of banknotes for the Bank of England since 1853 and has produced banknotes for over 140 countries. In recent years, the company has faced challenges in the form of increasing competition and declining demand for traditional banknote printing.
The Deal with Atlas Holdings
Under the terms of the agreement, Atlas Holdings will pay 130 pence per share for De La Rue, a premium of around 18% to the company’s closing price on Monday. The deal is subject to approval by De La Rue shareholders and regulatory bodies, including the UK’s Competition and Markets Authority.
Impact on De La Rue’s Shareholders
The news of the deal sent De La Rue’s share price soaring by around 16% on Tuesday. The acquisition represents a significant return for shareholders, who have seen the company’s share price decline by around 80% over the past decade.
Impact on the World
The acquisition of De La Rue by Atlas Holdings is likely to have a ripple effect on the global banknote printing industry. De La Rue’s competitors, including Giesecke & Devrient and Oberthur Fiduciaire, are expected to benefit from increased demand for their services as De La Rue focuses on its new owner’s priorities. The deal may also lead to increased consolidation in the industry as smaller players are acquired or merge to stay competitive.
Conclusion
The acquisition of De La Rue by Atlas Holdings marks a new chapter in the history of the British banknote printer. The deal represents a significant return for shareholders and is likely to have a ripple effect on the global banknote printing industry. As De La Rue focuses on its new owner’s priorities, competitors are expected to benefit from increased demand for their services. Only time will tell what the future holds for this historic company.
- De La Rue agrees to be bought by Atlas Holdings for 263 million pounds
- Atlas Holdings to pay 130 pence per share, a premium of around 18%
- Deal expected to complete by the end of the year, subject to approval
- De La Rue’s share price soars by around 16% on Tuesday
- Impact on global banknote printing industry: increased demand for competitors’ services, potential for increased consolidation
