ICSM Business – printing giant De La Rue in crisis as owners review its future with the possibility of it being broken up

By Harry Mottram: It’s a countdown to July when under pressure print outfit De La Rue will release its figures which could prompt merger talks, a take over or even a break up of the 200 year old business. When the Basingstoke based company lost the contract to print the new UK passport to European rivals it summed up how Brexit appeared to be unravelling – and led to an existential crisis at the business. Now it seems the board are considering its future which will send shivers through its long list of suppliers as trade publication Print Week reports on some alarming prospects.

Writing in the journal Jo Francis reported: “De La Rue could be broken up or merged with another business after a strategic review resulted in potential interest for both of its divisions. In a trading update filed today (30 May), De La Rue said its board had undertaken a review of the group’s core strengths and ‘how best to optimise the underlying intrinsic value of the business”’ for the benefit of all its stakeholders. De La Rue has two divisions: Currency and Authentication.”

Founded by Thomas de la Rue in 1821 the business prints anything from bank notes to tax stamps with around 160 foreign governments sending in orders along with the Bank Of England for who they print ‘paper’ money – now a polymer substrate. In the past the firm beat off a take over bid by Oberthur while in 2022/23 they made a massive £29m loss although are expected to be in profit in the last financial year. The figures will be published in July which will lead to mounting speculation the business could be broken up.

Chairman Clive Whiley told Print Week: “Since my appointment a year ago, the board has considered a broad range of possible strategic alternatives including transactions with multiple parties which may involve a combination with, or the sale of, the group's divisions. The Board confirms that the discussions with the relevant parties are advancing, and we expect to update further at the time of the full year results in July.”

For Print Week’s article see https://www.printweek.com/content/news/sitting-duck-de-la-rue-open-to-offers

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