UK banknote printer De La Rue has agreed to be bought by a US buyout firm in a deal worth £263 million.
The more than 200-year-old company, which is based in Basingstoke, Hampshire, will be taken off the London Stock Exchange and acquired by Atlas.
The decision comes as it received a rival bid from British financier Edi Truell, which offered 132.17p per De La Rue share – more than the 130p per share tabled by Atlas.
De La Rue’s boss said the company was “putting our weight” behind the Atlas bid despite it offering slightly less for the sale.
Connecticut-based Atlas specialises in buying and investing in struggling companies across industrial sectors such as construction, paper and printing, car components, and food production.
It currently has controlling stakes in a group of 27 firms which employ more than 57,000 people combined.
De La Rue launched a formal process earlier this year to put itself up for sale.
In January, it was approached over a possible takeover deal worth £245 million by a consortium of two of Mr Truell’s companies, Disruptive Capital GP and Pension SuperFund Capital.
On Tuesday, De La Rue said its board met on Monday evening to consider the latest proposal.
Chief executive Clive Vacher said that even though the value of the rival offer was “slightly higher”, the board had to consider “execution risk and time frames” which made Atlas’s bid more viable.
“We are putting our weight behind the Atlas bid,” Mr Vacher told the PA news agency, adding that the buyer has “strong financials to support growth”.
“Most importantly, under Atlas’s ownership we can ensure long-term stability for our customers and our people, and best position the business for its next chapter,” he said.
The acquisition needs to be approved by the company’s shareholders.
De La Rue has been struggling with a downturn in demand for cash since the pandemic, and in July last year it cautioned over risks to its ability to keep operating because of the payment of a loan due in July 2025.
It agreed to sell its authentication arm – which provides software for governments and businesses – to US-listed group Crane NXT for £300 million, which meant it could repay the loan in full.
Mr Vacher said this meant it would be transitioning to private ownership as a “cash-positive and debt-free” business.
The chief executive said the company had “undergone a fundamental transformation since 2020”, including enhancing profitability in its currency business.
The company currently has a “record order book” having navigated through a “deep downturn” during the Covid-19 pandemic when demand from central banks for new banknotes dropped.
“As demand has come back, we have captured a lot of it,” he told PA.
Peter Bacon, a partner at Atlas, said: “In De La Rue, we see a company that is an industry leader, but one which has faced multiple challenges in recent years.”
Atlas said it believes bringing the company under private ownership will put it in a better position to secure further investment.
Shares in De La Rue soared more than 15% on Tuesday morning.
