De La Rue Authentication Sale Secures Finances and Future

De La Rue has announced that it will sell its Authentication Division to Crane NXT for a cash consideration representing an enterprise value of £300 million. The sale will enable it to pay off a revolving credit facility due for repayment next July and significantly reduce the deficit in its legacy defined pension benefit scheme, leaving it focus on its core currency business.

De La Rue Authentication has been the company’s fastest growing business, having increased its revenues by almost 200% over the last five years. It generated £102.9 million in revenue in the last financial year (33% of the total), with projected revenues from existing contracts expected to surpass £350 million over the next three years.

Its portfolio includes labels and films incorporating surface-relief micro-structures and holographic technologies, as well as digital solutions that track and authenticate unique items across global supply chains. In addition to government revenue solutions (including tax stamps), it also holds brand protection contracts with Microsoft and a number of leading brands in personal care and spirits, along with the supply of data pages for the Australian passport.