De La Rue Set to Be Acquired by Atlas Holdings
De La Rue, the well-known British banknote manufacturer, is poised to undergo a significant transition as it has accepted a takeover bid from the U.S.-based investment group, Atlas Holdings. The agreement, which values the historic company at £263 million, signals yet another established British firm departing from the London stock market.
Details of the Takeover
The all-cash proposal by Atlas Holdings comes after months of speculation regarding De La Rue’s future in public markets. Previously, in January, the company received a £245 million cash offer from a consortium led by financier Edi Truell, setting the stage for ongoing negotiations and considerations.
Atlas Holdings has proposed a price of 130 pence per share, representing a notable premium of 19% over De La Rue’s closing stock price on December 11, just before the bidding process commenced. The company’s board has announced that they “intend to recommend unanimously” to shareholders to accept this offer.
Challenges Faced by De La Rue
De La Rue has encountered considerable challenges in recent years, notably after losing a lucrative government contract for manufacturing British passports in 2018. In response, the firm initiated a turnaround strategy in 2020 to strengthen its financial position and operational capabilities.
During an interview, Chief Executive Clive Vacher expressed confidence that Atlas would provide the necessary financial resources to enhance De La Rue’s growth trajectory, particularly as the company seeks to transition banknote production from traditional paper to polymer materials. He remarked, “Atlas can bring more resources to the table to help accelerate and increase that investment in technology.”
Shareholder Support and Future Outlook
As part of the acquisition process, approximately 40% of De La Rue’s shareholders have either given firm commitments to support the deal or have indicated their intentions to do so through letters of intent. Vacher also noted that he does not foresee the company returning to public listing in the near term.
Financial Maneuvers and Strategic Sales
Earlier this year, De La Rue initiated a formal sale process while evaluating multiple proposals, including Truell’s previous bid. Additionally, in October of the previous year, the company announced the sale of its authentication division to Crane NXT for an enterprise value of £300 million, with the funds earmarked for reducing its revolving credit facility.
Next Steps for the Acquisition
The takeover deal remains subject to both shareholder and regulatory approval. According to De La Rue, the acquisition is expected to conclude in the third quarter of 2025, marking a significant transition for the firm.