De La Rue to divest banknote paper business to Epiris

05 Feb 2018 − 

The transaction will strengthen De La Rue's balance sheet and enable further technology investments, according to the company.

Last week, banknote and security paper producer and printer De La Rue announced an agreement on the sale of its banknote and security paper business to Epiris Fund II. De La Rue's paper business which comprises the Overton and Bathford paper mills in the UK, will be renamed Portals De La Rue (Portals) Limited and sold to a newly formed company Whickerco Limited.

Epiris, together with the management of De La Rue paper business, is buying a 90% shareholding in Portals for a cash consideration of £61.0m (€69m) payable upon completion. De La Rue will retain the remaining 10% interest.

Commenting on the transaction De La Rue's CEO Martin Sutherland said: "We are pleased to have found the right partner for our paper business. It is another significant milestone as we transform De La Rue into a less capital intensive, technology-led product and service provider."

Under the terms of the agreement Portals will commit to supply paper to De La Rue for the next ten years. In addition, De La Rue will be Portals preferred supplier for security features, according to De La Rue.

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This article is an excerpt from an extended coverage on the ongoing consolidation in the banknote paper sector in Europe. The entire article will be published in EUWID Pulp and Paper issue 6.2018.

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