Basingstoke-headquartered bank note giant De La Rue announced that it had struck a definitive agreement for the sale of its authentication division to New-York listed Crane NXT, Co.
The deal is for cash and De La Rue said it represented an enterprise value of £300 million, of which 5% to be held in escrow for up to 18 months following completion. It is currently expected that completion will be during the first half of 2025.
Clive Whiley, chairman of De La Rue, said the sale represented a "substantial step forward on our route to realise the underlying intrinsic value of the De La Rue business for the benefit of all stakeholders".
"We are delighted to reach agreement with a company with the stature of Crane NXT, with its complementary strengths and are confident that the Authentication Division will continue to build on its considerable successes over the past few years."
He added that the deal's completion would allow the firm to repay its existing revolving credit facility in full ahead of its maturity on July 1 next year and would provide a "springboard to unlock" further intrinsic value as it moves to find a long-term funding solution for the group's legacy defined benefit pension scheme.
"In addition, we will be able to focus fully on building and growing our world-leading currency business," said Whiley.
Completion of the transaction is subject to a number of conditions, including a reorganisation to effect a divisional separation required to deliver the division to Crane NXT on completion, and obtaining customary antitrust approvals.
The group has also agreed to pay an additional £12.5m in deficit repair contributions to the pension scheme over the period to April 2027, further reducing the scheme's deficit.
