De La Rue Agrees to Takeover by Atlas Holdings

De La Rue, the prominent UK banknote manufacturer, has finalized a takeover agreement with Atlas Holdings, an investment group based in the United States. This acquisition, valued at £263 million, signifies another transition of a long-established British firm out of the London stock market.

Details of the Takeover

The all-cash proposition from Atlas concludes a period of uncertainty for De La Rue, which has been a public entity for many years. Earlier, in January, the company received a competing bid of £245 million from a consortium led by noted financier Edi Truell. Ultimately, Atlas presented a superior offer of 130p per share, which is a 19% premium compared to De La Rue’s stock price before the acquisition discussions began.

Company’s Challenges and Future Plans

Since losing a significant government contract in 2018 to produce British passports, De La Rue has been navigating challenging waters. In response, the company initiated a turnaround strategy in 2020 to strengthen its financial standing. Clive Vacher, the chief executive of De La Rue, expressed confidence that the backing from Atlas would provide essential capital for growth, particularly in advancing the technological transition from paper to polymer banknotes.

• About 40% of De La Rue’s shareholders have committed to supporting the acquisition.
• The company does not foresee a return to public listing in the near future, according to Vacher.
• Last October, De La Rue sold its authentication business, obtaining £300 million, which is slated to be used for debt repayment.

Conclusion and Next Steps

The takeover agreement is contingent on shareholder and regulatory approvals and is anticipated to be finalized in the third quarter of 2025. This transaction not only marks a significant change for De La Rue but also highlights the ongoing shifts within the British manufacturing industry.