De La Rue has agreed to sell its authentication division to New York-listed industrial technology firm, Crane NXT, for a cash consideration of £300m, in what it described a "substantial step forward".

The London-listed printing company, which prints banknotes for the Bank of England and other central banks, said the funds raised will be used to repay its existing revolving credit facility in full and reduce leverage to a net cash position.

Furthermore, the funds will be used to "significantly" reduce the deficit on its defined pension scheme by paying £30m as an accelerated contribution on completion.

Following completion of the deal, De La Rue said it expects to comprise its currency division with net cash on the balance sheet.

Chairman at De La Rue, Clive Whiley, said: "The sale of our authentication division to Crane NXT represents a substantial step forward on our route to realise the underlying intrinsic value of the De La Rue business for the benefit of all stakeholders.

"We are delighted to reach agreement with a company with the stature of Crane NXT, with its complementary strengths and are confident that the authentication division will continue to build on its considerable successes over the past few years.”

Investment director at AJ Bell, Russ Mould, stated that not only will the sale help to boost the firm’s balance sheet, but it will also put it in a "stronger financial position" to strengthen its currency division, which is expected to be sold in the "near future".

He added that the firm has already held talks with interested parties, but has "kept quiet on who they are and how much they are willing to pay".

President and chief executive officer at Crane NXT, Aaron W. Saak, added: "The acquisition of De La Rue accelerates our strategy as a market leader in providing trusted technology solutions that secure, detect and authenticate our customers' most valuable assets.

"Protection from counterfeiting and illicit trade is a priority for Governments and leading commercial product brands. This acquisition expands our technology capabilities and will drive profitable growth in new markets."

---