De La Rue plc announced on 18 August 2016 that it has signed an agreement to enter into a joint venture with the Government of Kenya.
The joint venture strengthens and builds on the 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 the strategic objective of building global partnerships. The joint venture’s facilities will become one of the Centres of Excellence for banknoteA banknote (or ‘bill’ as it is often referred to in the US) is a type of negotiable promissory note, issued by a bank or other licensed authority, payable to the bearer on demand. More and security print identified as part of the 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 cashMoney in physical form such as banknotes and coins. More 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 currencyThe money used in a particular country at a particular time, like dollar, yen, euro, etc., consisting of banknotes and coins, that does not require endorsement as a medium of exchange. More and security solutions for the largest economy in East Africa and for the region.”