Atlas Holdings to take De La Rue private in £263m cash acquisition

Atlas Holdings LLC, through its UK entity ACR Bidco Limited, has reached a definitive agreement to acquire De La Rue plc for approximately £263 million, valuing each share at 130 pence in cash. The transaction is to be executed via a court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006, subject to shareholder and regulatory approval.

This acquisition marks the culmination of De La Rue’s formal sale process initiated in February 2025, following its announcement to sell the Authentication Division, scheduled for completion on May 1, 2025. The offer price represents a 19% premium to the closing share price on December 11, 2024, a 38% premium to the pre-Authentication sale price, and a 30% uplift over the 90-day volume-weighted average leading into the offer period.

Bidco retains the right to implement the deal through a standard takeover offer, subject to the terms of the Co-operation Agreement and consent from the Takeover Panel.

Why Atlas believes De La Rue fits its portfolio strategy

Atlas Holdings has positioned the acquisition as a strategic addition to its portfolio of 27 industrial businesses generating $18 billion in annual revenue across 350 global facilities. With investments spanning printing, automotive components, food production, and pulp and paper, Atlas specialises in acquiring companies with proven infrastructure, long-term stakeholder relationships, and resilience in cyclical markets.

Founded 211 years ago, De La Rue operates across five continents, providing currency and security printing services to more than 140 countries. The firm’s two core divisions—Currency and Authentication—serve central banks, governments, and commercial entities with secure substrates, polymer banknotes, tax stamps, biometric passports, and more. Post-divestiture of the Authentication Division, De La Rue will focus on its leadership in currency solutions.

Atlas stated that De La Rue, with its mature and cyclical earnings profile, is best positioned under long-term private ownership, free from the pressures of public market expectations. The firm also highlighted its agreement with the Pension Trustee, aimed at safeguarding De La Rue’s defined benefit pension scheme while providing the operational flexibility required to invest and grow.

Shareholder support and terms of the scheme of arrangement

As of April 14, 2025, Bidco has secured irrevocable undertakings and letters of intent covering approximately 40.30% of De La Rue’s issued shares, including support from all directors. This includes a commitment from Aberforth Partners LLP, which manages over 10.82% of the shares, signalling strong institutional backing.

Shareholders will vote on the scheme at a Court Meeting and a subsequent General Meeting, requiring approval by a majority in number representing at least 75% in value of the shares voted. Should the scheme succeed, a High Court sanction and registration with the UK Registrar of Companies will be necessary for it to become effective.

Subject to these approvals and regulatory clearances, the acquisition is expected to complete in Q3 2025. A detailed Scheme Document, including voting instructions and meeting dates, will be sent to shareholders within 28 days of the announcement.

Sentiment analysis: How has the market reacted to De La Rue’s acquisition?

As of April 20, 2025, De La Rue’s shares are trading at approximately 129.00 pence, just shy of the 130 pence offer price. This reflects strong investor confidence that the deal will proceed without disruption, and limited scope for competing bids or price adjustments.

The current valuation also signals a near-full pricing in of the acquisition, with limited room for speculative gains. The stock has rebounded notably from its 52-week low of 77.40 pence, representing a more than 65% increase from the bottom, largely attributed to the strategic divestiture of the Authentication Division and the successful turnaround led by management.

Institutional ownership plays a critical role in shaping the deal’s trajectory. Major stakeholders such as Schroder Investment Management (16.61%), Aberforth Partners LLP (10.82%), and Crystal Amber Advisers (7.06%) have either provided irrevocable support or expressed favourable intent. These large holdings, alongside the directors’ stakes, provide a strong vote of confidence for retail investors.

Given the tight alignment between the share price and the offer value, analysts broadly recommend a ‘Hold’ stance at this juncture. While upside is capped near the offer price, the acquisition provides shareholders with cash certainty and a clear exit, especially amid ongoing volatility in industrial and manufacturing stocks globally.

What’s next for De La Rue under Atlas ownership?

Under the terms of the acquisition, De La Rue will delist from public markets, marking the end of its 211-year journey as a listed company. According to Peter Bacon of Atlas, the firm plans to take a long-term approach, investing capital to support strategic growth in De La Rue’s currency division.

Chairman Clive Whiley and CEO Clive Vacher both signalled that the deal finalises a successful turnaround phase initiated in 2020. The disposal of non-core operations, reorganisation of pension obligations, and leaner capital structure have positioned De La Rue for a more stable and agile future.

De La Rue’s leadership has also expressed confidence that private ownership will allow it to focus on strategic priorities—particularly in securing long-term contracts with central banks, enhancing supply chain resilience, and investing in secure printing innovation.

What should investors expect?

With the offer price largely baked into De La Rue’s current share valuation and broad institutional support evident, the acquisition appears likely to close as planned. For current shareholders, this provides a clear and relatively low-risk cash exit.

While speculative investors may see limited upside from arbitrage opportunities, the larger narrative is one of value realisation and operational stabilisation for a historically significant UK company. For Atlas, this acquisition reinforces its position in legacy infrastructure sectors with long-term client dependencies and significant barriers to entry.

The story of De La Rue’s transformation may now move off the public stage—but for long-term industrial players like Atlas, the real work begins behind the scenes.