The “Cash Processing Solutions” division of De La Rue has been sold to Privet Capital. The said transaction was completed with an amount of “£3.6m”, while there are scopes that if the division performs well, then the amount could jump up to another “£6.5m”.
It is expected that after the completion, the said deal would be made neutral to cash as the annual results for the fiscal year of 2015-2016, contains “a £23.4m non-cash exceptional charge in relation to the sale”.
Over a business review, the “banknote printer” arrived at a conclusion that the processing of cash has become a "non-core" issue. Moreover, CPU has not blending harmoniously with De La rue’s “current product portfolio and growth strategy”. Nevertheless, the firm has still retained a “strategic partnership with CPS under its new owners”.
As per the information provided by Digitallook:
“CPS provides cash processing hardware, software and associated services used in banknote processing to manage banknote production, cash in circulation and the maintenance of banknote authenticity, condition and fitness”.
The last year’s sales figure demonstrate a loss, while a further “operating loss of circa £8m” is expected as the sales are down by one third, whereby amounting roughly to “£34m”. The initial payment was of “£2.1m”, while a “deferred consideration” will take place in two “equal instalments”, whereby the total amount to be paid is “£1.5m”.
However, depending on “certain performance targets” besides other milestones, De La Rue could also be subject to “a further contingent consideration with a maximum payout of £6.5m”.
References:
http://www.digitallook.com/
It is expected that after the completion, the said deal would be made neutral to cash as the annual results for the fiscal year of 2015-2016, contains “a £23.4m non-cash exceptional charge in relation to the sale”.
Over a business review, the “banknote printer” arrived at a conclusion that the processing of cash has become a "non-core" issue. Moreover, CPU has not blending harmoniously with De La rue’s “current product portfolio and growth strategy”. Nevertheless, the firm has still retained a “strategic partnership with CPS under its new owners”.
As per the information provided by Digitallook:
“CPS provides cash processing hardware, software and associated services used in banknote processing to manage banknote production, cash in circulation and the maintenance of banknote authenticity, condition and fitness”.
The last year’s sales figure demonstrate a loss, while a further “operating loss of circa £8m” is expected as the sales are down by one third, whereby amounting roughly to “£34m”. The initial payment was of “£2.1m”, while a “deferred consideration” will take place in two “equal instalments”, whereby the total amount to be paid is “£1.5m”.
However, depending on “certain performance targets” besides other milestones, De La Rue could also be subject to “a further contingent consideration with a maximum payout of £6.5m”.
References:
http://www.digitallook.com/
