De La Rue considers selling 40% stake to private equity amid deal discussions

In recent months, De La Rue, a banknote printer based in Basingstoke, has been engaging in discussions with Disruptive Capital, a private equity firm, about potentially selling a significant stake in the company. The proposed transaction could involve selling up to 40 percent of De La Rue's shares at a price of 125 pence each. This valuation represents a notable 14 percent premium on the company's share price prior to the announcement of the talks. Following the disclosure of these discussions, De La Rue's share price experienced a modest rise of 2.3 percent, increasing by 2.5 pence to reach 112 pence per share. The discussions with Disruptive Capital are indicative of De La Rue's ongoing efforts to restructure its operations and secure necessary funding amid ongoing challenges in the currency printing sector. Simultaneously, De La Rue announced that it is involved in negotiations with additional parties regarding the sale of its currency business. However, the company emphasized that there is no certainty surrounding any deal at this stage. For the six months ending September 28, De La Rue reported a profit of £7.3 million, which shows a decrease from £7.9 million in the same period the previous year. Additionally, revenues saw a notable decline, dropping by 10 percent to £145 million, highlighting the economic pressures and fluctuations in demand within the industry. In October 2024, De La Rue entered into an agreement to sell its authentication business to the US firm Crane NXT for £300 million, which was viewed as a strategic move to refocus its business and invest in core operations. Clive Vacher, the Chief Executive of De La Rue, stated that the company has been approached by multiple parties and is actively seeking potential investors to bolster its position and market presence. These developments are particularly important given the evolving landscape of the global currency printing market and the heightened competition from both domestic and international players. This strategic decision by De La Rue to explore private equity partnerships indicates a significant shift in its approach to funding and growth. Overall, these financial maneuvers reflect the company's recognition of the need to adapt to market demands and investor expectations, as it navigates through a challenging economic climate while aiming to strengthen its competitive edge. As discussions continue, analysts and industry observers will be closely monitoring the outcomes of these negotiations to gauge the future direction of De La Rue and its potential impact on the broader currency printing industry.