TIDMDLAR
RNS Number : 9294B
De La Rue PLC
12 June 2019
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No.596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
DE LA RUE PLC
Sale of International Identity Solutions business
12 June 2019
-- Exits prime system integration in the identity market with
the sale of International Identity Solutions business for a cash
consideration of GBP42m
-- Refocuses on identity-related security features and
components to maximise technology and customer synergies with the
rest of the Group
-- Strengthens De La Rue's balance sheet and enables the Group
to focus on other strategic growth areas such as Product
Authentication & Traceability and Security Features
De La Rue plc ("De La Rue" or the "Group"), the world's premier
currency and authentication provider, is pleased to announce that
it has agreed the sale of its International Identity Solutions
business ("International ID") to HID Corporation Limited ("HID
Global"), an ASSA ABLOY Group company, for a cash consideration of
GBP42m on a cash free debt free basis, payable upon completion.
Under the terms of the agreement, HID Global will acquire De La
Rue's international identity solutions contracts, associated
software, passport assembly facilities in Malta, and certain
printing contracts of security documents such as visas and
birth/death/marriage certificates. The agreement also includes De
La Rue providing printing services to HID Global until March 2022.
The UK passport contract is outside the scope of the agreement.
This transaction will allow the Group to refocus on
identity-related security features and components where the market
opportunities are more accessible. Strong synergies in technology
and customer relations between identity security features and the
rest of the Group will enable it to generate better returns on
investment. The sale proceeds will strengthen the Group's balance
sheet, providing it with greater flexibility to invest in other
strategic growth areas.
In the financial year to 30 March 2019, the business generated
sales of GBP37.8m and an operating profit of GBP2.3m (post
allocated corporate overhead). The gross assets of the business
were GBP88m as at 30 March 2019, of which GBP38m will be
transferred with the business.
The transaction is expected to complete within this calendar
year.
Commenting on the transaction, Martin Sutherland, Chief
Executive Officer of De La Rue said:
"After assessing all options, we believe that exiting the end to
end identity solutions market is the right one for the Group and
will deliver the most value to shareholders. Focusing on the
identity-related security features and components is in line with
our strategy to transform De La Rue to an asset light and more
technology-led business. This transaction strengthens our balance
sheet and allows us to focus on the other strategic growth areas of
Security Features, Polymer, and PA&T."
De La Rue plc's LEI code is 213800DH741LZWIJXP78.
This transaction constitutes a class 2 transaction for the
purposes of the Financial Conduct Authority's Listing Rules.
The person responsible for the release of this announcement on
behalf of De La Rue plc is Helen Willis (Chief Financial
Officer).
Enquiries:
De La Rue plc +44 (0)1256 605000
Martin Sutherland Chief Executive Officer
Helen Willis Chief Financial Officer
Lili Huang Head of Investor Relations
Brunswick +44 (0)207 404 5959
Azadeh Varzi
Stuart Donnelly
About De La Rue
De La Rue's purpose is to enable every citizen to participate
securely in the global economy. As a trusted partner of
governments, central banks and commercial organisations, De La Rue
provides products and services that underpin the integrity of
trade, personal identity and the movement of goods.
As the world's largest designer and commercial printer of
banknotes, De La Rue designs, manufactures and delivers banknotes,
banknote substrates and security features to customers in a world
where currency will continue to be a key part of the developing
payments eco-system. De La Rue is the only integrated supplier of
polymer banknotes, and creates security features that ensure
banknotes are protected against counterfeiting.
De La Rue is the world's largest commercial designer and printer
of passports, delivering national and international identity tokens
and software solutions for governments in a world that is
increasingly focused on the importance of a legal and secure
identity for every individual.
De La Rue also creates and delivers secure product identifiers
and 'track and trace' software for governments and commercial
customers alike to help to tackle the challenge of illicit or
counterfeit goods and the collection of revenue and excise
duties.
De La Rue is listed on the London Stock Exchange (LSE:DLAR). For
further information visit www.delarue.com
About ASSA ABLOY
The ASSA ABLOY Group is the global leader in access solutions.
The Group operates worldwide with 48,500 employees and sales of SEK
84 billion. The Group has leading positions in areas such as
efficient door openings, trusted identities and entrance
automation. ASSA ABLOY's innovations enable safe, secure and
convenient access to physical and digital places. Every day, we
help billions of people experience a more open world.
About HID Global
HID Global powers the trusted identities of the world's people,
places and things. We make it possible for people to transact
safely, work productively and travel freely. Our trusted identity
solutions give people convenient access to physical and digital
places and connect things that can be identified, verified and
tracked digitally. Millions of people around the world use HID
products and services to navigate their everyday lives, and over 2
billion things are connected through HID technology. We work with
governments, educational institutions, hospitals, financial
institutions, industrial businesses and some of the most innovative
companies on the planet. Headquartered in Austin, Texas, HID Global
has over 3,000 employees worldwide and operates international
offices that support more than 100 countries. HID Global(R) is an
ASSA ABLOY Group brand. For more information, visit
www.hidglobal.com.
Cautionary note regarding forward-looking statements
This announcement may contain statements that are, or may be
deemed to be, "forward-looking statements". These forward-looking
statements can be identified by the use of forward-looking
terminology, including the terms "believes", "estimates",
"anticipates", "expects", "intends", "plans", "goal", "target",
"aim", "may", "will", "would", "could" or "should" or, in each
case, their negative or other variations or comparable terminology.
These forward-looking statements include all matters that are not
historical facts and include statements regarding the intentions,
beliefs or current expectations of the directors of De La Rue or
the Group concerning, amongst other things, the results of
operations, financial condition, prospects and strategies of De La
Rue.
By their nature, forward-looking statements involve risks and
uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future and may be
beyond De La Rue's ability to control or predict. Forward-looking
statements are not guarantees of future performance. The Group's
actual results of operations and financial condition may differ
materially from the impression created by the forward-looking
statements contained in this announcement.
Other than in accordance with its legal or regulatory
obligations, De La Rue does not undertake any obligation to update
or revise publicly any forward-looking statement, whether as a
result of new information, future events or otherwise.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCCKBDKPBKKNAD
(END) Dow Jones Newswires
June 12, 2019 02:00 ET (06:00 GMT)
De La Rue (LSE:DLAR)
Historical Stock Chart
From Apr 2024 to May 2024
De La Rue (LSE:DLAR)
Historical Stock Chart
From May 2023 to May 2024