(PPI Europe) -
De La Rue has entered into a strategic relationship with the private equity boutique Epiris for its security paper business, now renamed Portals De La Rue, comprising the Overton paper mill and the Bathford paper mill. Under the terms of the agreement, Epiris will buy a 90% shareholding in Portals De La Rue through the newly formed company WhickerCo, for a cash consideration of c£61m payable upon completion.
“This equates to an enterprise value of c£68 million ($96 million) and a multiple of 12.8x average adjusted EBIT 2015-18. De La Rue will retain the remaining 10% interest,” the firm said in a press release. As a consequence of the deal, Portals De La Rue will “commit to supply pre-agreed volumes of paper to De La Rue with a pre-agreed price mechanism for the next ten years. This will meet most of the group’s anticipated internal requirements for finished banknotes and security documents,” the firm stated. It added: “In addition, De La Rue will be Portals De La Rue’s preferred supplier for security features. Following completion, the existing management team of De La Rue’s paper business will remain with Portals De La Rue.”
PPI Europe subscribers - click here to read the full
Not a subscriber?
PPI Europe is the European pulp and paper industry's leading source of news, market updates and price reports.