Global private equity firm The Carlyle Group is buying Cash Systems, the global provider of cash-handling technology, from money printer De La Rue for an enterprise value of £360 million (€457 million; $707 million).
Merrill Lynch said that the price was at the lower end of the expected range.
Cash is king
Cash Systems is a cash-handling technology group which designs, manufactures and services specialist equipment to sort, count, authenticate and dispense notes and coins for financial and retail institutions.
The company installed the world's first automated teller machine at Barclays Bank in London in 1967. Today, one in 10 of the world's ATMs has a Cash Systems mechanism inside. According to a press release, more than 5,000 banks in more than 60 countries use Cash Systems, which is headquartered in the UK with 14 offices globally.
Andrew Burgess, a Carlyle managing director, said: “Cash remains the preferred global payment method with 50 percent of all payments made with notes and coins. Its ease of use and universal acceptance mean that the circulation of cash is projected to increase significantly.”
The investment has been made through Carlyle Europe Partners III, Carlyle’s third European buyout fund, which closed in 2007 with €5.35 billion in commitments.
The debt financing for the transaction was provided by Lloyds TSB, Société Générale, Calyon and GE Corporate Finance. Carlyle was advised by Clifford Chance and UBS.