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Investors in animal fat £5 notes collect millions in profit after sale to CCL Industries Investors in animal fat £5 notes collect millions in profit after sale of Innovia to CCL Industries
(35 minutes later)
The firm that makes the controversial new plastic £5 note, revealed to contain animal fat, has been bought by Canadian firm CCL Industries for 1.13 billion Canadian dollars (£680 million). The firm that makes the controversial new plastic £5 note, revealed to contain animal fat, has been bought by Canadian firm CCL Industries for 1.13 billion Canadian dollars (£680 million). 
The animal fat scandal has not hurt the company’s private equity investors, one of whom, Electra Partners, collected £106m from the sale. The price meant a 32 per cent profit on the stake in Innovia it bought two years ago when Innovia was awarded the Bank of England contract. The animal fat scandal has not hurt the company’s private equity investors, one of whom, Electra Partners, collected £106m from the sale. The price meant a 32 per cent profit on the stake in Innovia it bought two years ago when Innovia was awarded the Bank of England contract.
Innovia attracted heavy criticism after it emerged in November that it used tallow derived from animal carcasses to give the notes their texture. Animal rights campaigners, vegans, Sikhs and Hindus among others condemned the Bank of England for allowing the substance to be used.Innovia attracted heavy criticism after it emerged in November that it used tallow derived from animal carcasses to give the notes their texture. Animal rights campaigners, vegans, Sikhs and Hindus among others condemned the Bank of England for allowing the substance to be used.
A petition to ban the notes has attracted 132,000 signatures, prompting the Bank to work on “potential solutions” to the problem. The BoE said it was only made aware of the use of tallow after the notes had gone into circulation.A petition to ban the notes has attracted 132,000 signatures, prompting the Bank to work on “potential solutions” to the problem. The BoE said it was only made aware of the use of tallow after the notes had gone into circulation.
CCL Industries, Canadian label and packaging maker was not put off by the scandal however. Geoffrey Martin, chief executive of CCL said the deal would “propel the company to world leadership in the disruptive, fast growing polymer banknote market. Canadian label and packaging maker CCL Industries  was not put off by the scandal however. Geoffrey Martin, chief executive of CCL said the deal would “propel the company to world leadership in the disruptive, fast growing polymer banknote market".
UK-based Innovia Group is a maker of speciality polypropylene films used in labels and packaging, but the prime motivator of the deal appears to have been Innovia’ position as the dominant supplier of polymer banknotes, which are considered more secure. UK-based Innovia Group is a maker of polypropylene films used in labels and packaging, but the prime motivator of the deal was Innovia’ position as the dominant supplier of polymer banknotes, which are considered more secure.
The methods by which the company obtained that position are subject to some controversy. The company’s bank note division, previously known as Securency, has been at the centre of one of the biggest bribery scandals in central bank history, uncovered by Australia's the Age newspaper.  The methods by which the company obtained that position are subject to a high degree of controversy. The company’s bank note division, previously known as Securency, has been at the centre of one of the biggest bribery scandals in central bank history, uncovered by Australia's the Age newspaper. 
Started as a joint venture between the Reserve Bank of Australia (RBA) and Innovia Films in 1996, its former employees have been found guilty of offering bungs to foreign officials to win contracts.Started as a joint venture between the Reserve Bank of Australia (RBA) and Innovia Films in 1996, its former employees have been found guilty of offering bungs to foreign officials to win contracts.
In May this year, former Africa sales manager, Peter Chapman, was sentenced at Southwark Crown Court to two and a half years in prison for channelling money through offshore bank accounts to a Nigerian official between 2007 and 2009. In May this year, former Africa sales manager, Peter Chapman, was sentenced at Southwark Crown Court to two and a half years in prison for channelling money through offshore bank accounts to a Nigerian official between 2007 and 2009. 
In 2012 the company’s former chief financial officer, David Ellery, was sentenced by an Australian court to a six month suspended sentence for false accounting over the cover up of a  A$79,502 “commission payment”to a Malaysian agent. Questioned under oath, Mr Chapman stated that senior executives knew of his actions.
In 2012 the company’s former chief financial officer, David Ellery, was sentenced by an Australian court to a six month suspended sentence for false accounting over the cover up of a  A$79,502 “commission payment” to a Malaysian agent. 
The sentencing judge slammed the culture in the company at the time: “You were acting within the culture which seems to have developed within Securency, whereby staff were discouraged from examining too closely the use of, and payment arrangements for, overseas agents,” the ruling said. “Secrecy, and a denial of responsibility for wrongdoing, also seem to have been part of the corporate culture at Securency at that time.”
The judge wrote in the ruling that when sentencing he had taken into account the fact that Ellery would be an important witness in charging other senior executives.
Cases against former senior executives - none of whom are still at the company - were brought in July 2011 but remain ongoing. Cases against former senior executives - none of whom are still at the company - were brought in July 2011 but remain ongoing. 
A 2010 audit by accountancy firm KPMG found that the company had paid A£47.5 million (£28 million) in commission payments to middlemen in countries around the globe with the aim of winning contracts.  A 2010 audit by accountancy firm KPMG found that the company had paid A£47.5 million (£28 million) in commission payments to middlemen in countries around the globe with the aim of winning contracts. 
The Bank of England would not comment on what it knew about the corruption allegations and prosecutions but said it had carried out due diligence on the company.
CCL said it expected Innovia is expected to generate net revenue of about C$570 million (£343 million) for 2017, CCL said.CCL said it expected Innovia is expected to generate net revenue of about C$570 million (£343 million) for 2017, CCL said.