The Carlyle Group receives binding offer for Talaris

GLORY Ltd, a manufacturer of money handling and cash management systems makes a binding and irrevocable offer to acquire Talaris from The Carlyle Group for £650m

Talaris has expanded to new markets and increased earnings by more than 40% during Carlyle’s ownership

Basingstoke, UK – Global alternative asset manager The Carlyle Group today announced that it has received a binding irrevocable offer from GLORY LTD. (“GLORY”) to purchase Talaris for an enterprise value of £650m. Talaris is a global provider of cash handling equipment, servicing and software solutions and GLORY is a manufacturer of money handling systems. Following consultation with the French works council, if the offer is accepted, the contemplated transaction will be subject to regulatory approvals.

Carlyle Europe Partners III, L.P. acquired De La Rue Cash Systems from De La Rue plc in September 2008 for £360m, rebranding the company “Talaris”, and focusing on the growth of the business through expansion into new markets accompanied by significant investment in new product related research and development. Carlyle facilitated the company’s expansion into new geographies, particularly in markets like Brazil, where Carlyle’s partner Banco do Brasil is one of Talaris’ most recently established clients. Carlyle’s continuous investment in new technologies at Talaris has ensured that its products continue to set the industry standards. Earnings have increased by more than 40% under Carlyle’s ownership.

Headquartered in Basingstoke, Talaris designs, manufactures, sells and maintains cash management solutions with customers across the banking, retail and gaming sectors. The company delivers cash handling solutions on every continent and employs approximately 1,900 personnel around the world. Talaris offers integrated local, pan-regional and international solutions with direct offices in over 20 countries complemented by a substantial network of business partners increasing coverage to over 100 countries.

Tim Robinson, CEO of Talaris, said, “We are delighted to have partnered with Carlyle, which has supported Talaris’ global rebrand and transformation into an independent, fast growing and highly profitable business. During Carlyle’s four year ownership, our earnings have increased by more than 40% and we have expanded into many new and emerging markets. Carlyle’s sector expertise and global platform have been invaluable to the company and fundamental to the growth and success we have enjoyed. We are excited about the potential partnership with GLORY which we believe will enhance our combined offerings, underscoring our continued commitment to delivering excellence in customer service.”

Andrew Burgess, Managing Director at The Carlyle Group said, “Talaris is an outstanding example of a company that delivers strong growth through innovation and excellence in execution. In 2008, we were confident in the continued popular use of cash and subsequent increased global demand for efficient cash handling solutions by financial institutions, and are delighted to have delivered our value creation strategy for the company. GLORY is an excellent strategic partner for Talaris and the proposed transaction is an exciting opportunity to ensure the business continues to maximise its full global potential.”

Hirokazu Onoe, President of GLORY said, “Talaris has demonstrated strong performance in recent years despite the challenging market environment and we are excited by our combined growth potential. An acquisition of Talaris would provide GLORY with a global distribution and maintenance service network, the additional solution capabilities of Talaris Group, as well as an extensive customer base. Moreover, by combining GLORY’s product development capabilities with Talaris’ expertise, improved services for money handling solutions can be provided to our customers.”

Equity for this investment came from Carlyle Europe Partners III (CEP III), a €5.3 billion investment fund that closed in 2007.

Carlyle is advised by Bank of America Merrill Lynch and Clifford Chance. Glory is advised by KPMG LLP and Slaughter & May.

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About Talaris
Talaris provides comprehensive global cash management solutions that deliver measureable results for business optimisation across the banking, retail and gaming sectors. Through our solutions delivery we are committed to ensuring our customers achieve their business objectives of increasing efficiency, enhancing productivity and customer service and delivering bottom line profitability.

As a global business it comprises of over 1,900 personnel including more than 1,100 service and support staff operating from direct offices in over 20 countries. This model is by a further enhanced by a network of more than 130 business partners increasing coverage to over 100 countries and enabling local and regional solutions delivery as required.

The Group is committed to innovation and currently holds over 300 patents and designs granted across 28 countries covering every aspect of coin and note management, authentication, mechanisms, software and related technologies. It is these innovations that continue to further differentiate the business and deliver true business value to customers on every continent – wherever money moves.

Talaris was formerly a De La Rue Company, and commenced independent operations in September 2008 as a result of a management led buyout supported by The Carlyle Group, one of the world’s largest private equity firms. In 2010 Talaris was ranked 67th in The Sunday Times HSBC Top Track 250 league table.

About Carlyle
The Carlyle Group is a global alternative asset manager with $148 billion of assets under management in 89 active funds and 52 fund of fund vehicles as of September 30, 2011. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Fund of Funds Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has developed expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,200 people in 33 offices across six continents.
Web: www.carlyle.com
Video: http://www.youtube.com/user/OneCarlyle/videos

About GLORY LTD.
GLORY LTD., headquartered in Himeji, Japan, is a pioneer in the development and manufacture of money handling machines and systems. GLORY provides a variety of products built on its leading-edge recognition/identification and mechatronics technology, such as money handling machines, cash management systems, vending machines and automatic service equipment. Committed to meet society's wide-ranging needs, GLORY serves the financial, retail, vending machine, amusement and gaming industries in over 80 countries of world. GLORY employs more than 6,000 people worldwide. For more information about GLORY, please visit GLORY's global Website at www.glory-global.com

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