De La Rue to aquire DuPont Authentication
DE LA RUE PLC
De La Rue to acquire DuPont Authentication
12 December 2016
De La Rue plc ("De La Rue" or the "Group") today announces that it has agreed to acquire the Authentication business of DuPont Electronics & Communications ("DuPont Authentication" and "DuPont", respectively) for a cash consideration of $25m.
DuPont Authentication is a leading global producer of photopolymer holographic films and 3D holograms and associated software. Its technology is used to authenticate products ranging from consumer electronics to spirits and also to secure identity documents. Its products are based on the highly specialised and secure Lippmann holography technology.
Based in Utah, USA and with operations in Delaware, DuPont Authentication has a well-established global customer base in brand protection and identity authentication. Its customers include leading government entities and companies, such as Lenovo Group and Brother Industries Ltd. The business has c40 employees and is expected to generate c$14m of revenue in the calendar year of 2016.
This acquisition is in line with De La Rue's five year strategic plan to transform the Group into a technology-led security product and service provider. It will strengthen De La Rue's Security Features, Product Authentication & Traceability, and Identity Solutions product lines. DuPont Authentication's proprietary technology will also provide a solid platform for De La Rue to create new applications for the Currency market.
The transaction is expected to complete by the end of this calendar year, subject to specific closing conditions. It is anticipated to be earnings accretive in the first year post completion.
Martin Sutherland, Chief Executive Officer of De La Rue, commented:
"We are delighted to have made further progress against our 2020 strategic plan by adding DuPont Authentication to the De La Rue family. It is a business with a strong intellectual property portfolio, global blue-chip customers and a committed and experienced workforce.
"Government and brand owners around the world are increasingly focused on protecting identities and their supply chains from counterfeiting and protecting both revenues and customers from illicit trade. This transaction will further enhance our position in this strategically important and growing market.
"DuPont Authentication's market leadership in holographic security features, technology expertise and production capabilities will complement our existing technology platform. Its combination with our brand's global reach and strong sales resources will also ensure a route to multiple new opportunities for DuPont Authentication and its employees."
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Enquiries:
De La Rue plc +44 (0)1256 605000
Martin Sutherland Chief Executive Officer
Jitesh Sodha Chief Financial Officer
Lili Huang Head of Investor Relations
Brunswick +44 (0)207 404 5959
Jon Coles
Oliver Hughes
About DuPont Authentication
Established in 1999 as DuPont Holographics, Inc., DuPont Authentication is the pioneer of the Lippmann holography technology that produces easily identified and recognised visual 3D holographic images and animations. The manufacturing methods and systems to produce Lippmann holograms are fundamentally different to the ones used for the conventional embossed holograms. DuPont Authentication is one of the very few suppliers in the world that have the capability to produce Lippmann holograms on an industrial scale. Its main products include:
Izon® - a deep, 3D, overt authentication technology that allows viewers to see around all four sides of an embedded image. It is recognised as the premier anti-counterfeiting technology for brand protection and is used on a number of globally recognised brands and one of the world's most secure passports.
Omnidex® - films for 3D optical simulation and mapping.
Traceology® - an online track and trace system that enables label tracking and electronic verification of authenticity.
DuPont Authentication has development and manufacturing facilities in Logan, Utah and Wilmington, Delaware in the United States.
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 fully integrated supplier of both paper and 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
This information is provided by RNS
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