The Carlyle Group Acquires De La Rue Cash Systems for £360 Million

London, U.K. – Global private equity firm The Carlyle Group today announces that it will acquire from De La Rue plc its global provider of cash handling technology, Cash Systems (“Cash Systems”), for an enterprise value of £360 million.

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 group has three divisions providing ‘Branch Teller Automation’ products, desktop cash handling products and ATM technology for OEMs.

Cash Systems installed the world's first Automated Teller Machine (ATM) at Barclays Bank in London in 1967 and, today, one in ten of the world's ATMs has a Cash Systems mechanism inside. Over 5000 banks, in over 60 countries, already rely on Cash Systems handling solutions. Headquartered in Basingstoke, U.K., with 14 offices globally, Cash Systems has market leading positions in North America, Spain, Germany, France and the U.K.

Tracey Graham, Managing Director, Cash Systems commented, “Cash Systems is pleased to welcome Carlyle as a shareholder in this rapidly expanding business. We have an ambitious growth strategy which reflects escalating demand for our innovative cash management and security solutions. Carlyle’s sector expertise, global support and financial acumen will prove very valuable to Cash Systems as we develop our operations as a standalone business, while maintaining a strong relationship with our former parent De La Rue, the world’s foremost commercial security printer.”

Andrew Burgess, Managing Director, The Carlyle Group said, “Cash remains the preferred global payment method with 50% 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. Cash Systems’ market leadership reflects the strength of its technology platform and reputation for quality, accuracy and service. The market for its products continues to grow as clients seek enhanced efficiency, customer service and security, and respond to regulation. Carlyle is delighted to have the opportunity to support Cash Systems’ strong and committed management team in realizing its vision for the business.”

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 transaction is subject to customary closing conditions.

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.

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