Privet acquires CPS from De La Rue in deal worth up to £10.1m

The deal will see Privet pay £2.1m on completion of the deal, with £1.5m due over the course of the subsequent two years. It will also feature performance-related payments worth up to £6.5m.

Privet intends to generate value by focusing on operational improvements and will partner with De La Rue on matters related to product development, sales and marketing.

CPS’s existing management team will continue to lead the company upon completion of the deal.

De La Rue said it expects a £23.4m non-cash exceptional charge related to the sale in its annual results, which will be published on 24 May. The listed vendor’s sale of CPS forms part of a recent decision to divest non-core assets.

Company
CPS provides products and services to enable banknote issuing, circulation, processing and destruction by central banks. Its services include note counting and verification.

In the financial year to March 2016, CPS forecasts a turnover of £49.3m with operating losses of around £8m. The business has a headcount of 500.

Headquartered in Basingstoke, Hampshire, De La Rue was founded in 1813 and has been developing banknote equipment for around 40 years.

People
Privet Capital – Steve Keating (founder, managing partner).
Cash Processing Solutions – Keith Eckford (managing director).
De La Rue – Martin Sutherland (CEO).

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