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De La Rue has sold its loss-making Cash Processing Solutions business to private equity house Privet Capital.

De La Rue said that after an extensive review, it had deemed the CPS business to be non-core. CPS provides a range of services to central banks and commercial customers, including high-speed cash sorting and authentication systems.

In De La Rue’s 2015 results the CPS business made a £400,000 operating profit on sales of £49.3m. But in the financial year just concluded it is expected to post an operating loss of around £8m on sales down to £34m. CPS had gross assets of £32.8m.

Privet Capital has paid £2.1m for the CPS operation via acquisition vehicle CPS Topco, with a further £1.5m deferred consideration to be paid over two years. De La Rue has entered into a strategic partnership with CPS Topco and will also receive a further contingent consideration of £6.5m “in the event that certain performance related and event driven milestones are achieved by CPS”. De La Rue chief executive Martin Sutherland said: “The sale will enable De La Rue to focus on its core business and future growth areas, as well as allow CPS to achieve its full potential under the new ownership.”