A BANKNOTE maker running North-East factories has sold a division in a deal potentially worth more than £10m.

De La Rue, which operates plants in Gateshead, has offloaded its Cash Processing Solutions business and subsidiaries to CPS Topco Limited.

Bosses say the division, which supplies software and equipment to count cash and check its authenticity, no longer suits their plans.

The move comes as the company carries out a review of its operations.

Last year, The Northern Echo revealed up to 85 jobs were being cut in Gateshead as De La Rue tackled falling profits and fierce European competition.

Officials also previously announced manufacturing of British postage stamps would switch from the region to Malta, with De La Rue’s Team Valley base creating up to ten jobs by taking on some contracts from the Mediterranean country.

Referring to its Cash Processing Solutions deal, Martin Sutherland, chief executive, said: “Following a root and branch review, while CPS has a good profile and long-term customer relationships, we don’t believe it should form part of our portfolio.

“The sale will enable us to focus on our core business and future growth areas.”

Mr Sutherland added De La Rue has received an initial £2.1m for the division, saying it will get £1.5m in two equal instalments on the first and second anniversaries of the agreement, and a potential £6.5m if targets are met.

De La Rue’s banknote operation is the largest facility of its kind in the world.

The company also operates a passport printing factory in the region and is known for making security stickers.