De La Rue to aquire DuPont Authentication

Staff reporter, 12-Dec-2016

De La Rue has agreed to acquire the Authentication business of DuPont Electronics & Communications 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 around $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.

De La Rue's chief executive Martin Sutherland (pictured) described DuPont as "a business with a strong intellectual property portfolio, global blue-chip customers and a committed and experienced workforce."

He continued: "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."