(Reuters) -U.S. private equity firm Atlas (NYSE: ATCO ) Holdings will buy British banknote printer De La Rue (LON: DLAR ) for 263 million pounds ($347.1 million), the companies said on Tuesday.

The 130 pence per share all-cash deal was at a 16% premium to De La Rue’s closing price on Monday, and has been recommended by the company’s board as "fair and reasonable".

De La Rue, which printed the new King Charles’ currency notes in the UK, received a 125 pence a share takeover proposal from a consortium of British financier Edi Truell’s companies in January, and launched a formal sale process a few weeks later.

($1 = 0.7577 pounds)