De La Rue plc (“De La Rue” or the “Group”) today announces that it has signed an agreement to enter into a joint venture with the Government of Kenya.
The joint venture strengthens and builds on our existing long term strategic relationship with the Government of Kenya. This agreement enhances the Group’s position in East Africa and is in line with our strategic objective of building global partnerships. The joint venture’s facilities will become one of the Centres of Excellence for banknote and security print identified as part of our recent manufacturing footprint review. The facilities, employing around 290 people locally, will be based in Nairobi and will supply both the domestic and export markets.
Under the terms of the agreement, the Government of Kenya will take a 40% interest in De La Rue’s wholly owned subsidiary, De La Rue Kenya EPZ Limited, for a cash consideration of £5.0m payable upon completion.
The transaction is expected to complete by the end of this calendar year. De La Rue will continue to operate and manage the business following the completion.
Martin Sutherland, Chief Executive Officer of De La Rue, commented:
“De La Rue is delighted to have extended our longstanding relationship with the Government of Kenya into an ever closer partnership. The joint venture fits with our strategy of expanding into key growth markets through long term partnerships. It will secure our position as a supply hub of currency and security solutions for the largest economy in East Africa and for the region.”
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Martin Sutherland Chief Executive Officer
Jitesh Sodha Chief Financial Officer
Lili Huang Head of Investor Relations
About De La Rue
De La Rue’s purpose is to enable every citizen to participate securely in the global economy. As a trusted partner of governments, central banks and commercial organisations, De La Rue provides products and services that underpin the integrity of trade, personal identity and the movement of goods.
As the world’s largest designer and commercial printer of banknotes, De La Rue designs, manufactures and delivers banknotes, banknote substrates and security features to customers in a world where currency will continue to be a key part of the developing payments eco-system. De La Rue is the only fully integrated supplier of both paper and polymer banknotes, and creates security features that ensure banknotes are protected against counterfeiting.
De La Rue is the world’s largest commercial designer and printer of passports, delivering national and international identity tokens and software solutions for governments in a world that is increasingly focused on the importance of a legal and secure identity for every individual.
De La Rue also creates and delivers secure product identifiers and ‘track and trace’ software for governments and commercial customers alike to help to tackle the challenge of illicit or counterfeit goods and the collection of revenue and excise duties.
De La Rue is listed on the London Stock Exchange (LSE:DLAR). For further information visit www.delarue.com