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The Carlyle Group completes the sale of Talaris

GLORY Ltd, a manufacturer of money handling and cash management systems, as acquired Talaris from The Carlyle Group for ?650m

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

Global alternative asset manager The Carlyle Group today announced that it has completed the sale of Talaris to GLORY LTD. (GLORY) following necessary regulatory approvals. The transaction has 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.

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, such as Brazil, where Carlyle?s partner Banco do Brasil is one of Talaris? newest clients.Carlyle?s continuous investment in new technologies has enabled Talaris? products to continue to set the industry standards. Earnings 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 more than 20 countries complemented by a substantial network of business partners increasing coverage to more than 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 increased by more than 40% and we 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 new 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 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 this 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. Our acquisition of Talaris will 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 was advised by Bank of America Merrill Lynch and Clifford Chance. Glory is advised by KPMG LLP and Slaughter & May.

Source: Carlyle