Securency, an Australian secure film producer that manufactures the trademarked Guardian polymer substrate for banknote printing, is a joint venture between Cumbria-headquarted Innovia Films and the Reserve Bank of Australia (RBA).

In late 2010, both organisations, who each had a 50% stake in Securency, announced their intention to sell the business following allegations that staff had bribed foreign officials to secure contracts.

But Innovia Films said that a lack of suitable offers led it to change its mind on the sale, and it paid AUD $65m (£43.4m) for RBA’s shares. This could be bolstered by additional payments if Securency surpasses certain earnings targets.

The acquisition will complete on 28 February, making Securency a wholly-owned subsidiary of Innovia Films.

An Innovia Films spokesperson said: "Securency is a strong strategic fit within Innovia Film’s portfolio.

"After being part-owner for 15 years, Innovia has an implicit understanding of Securency’s business. The acquisition creates tremendous stability for Securency and for the market.

"Our objective is to continue to develop and grow Securency. Innovia is a financially solid organisation that can support Securency’s growth plans.

"Innovia has been a strong partner during difficult times which has helped Securency trade strongly during this period, which included adding Canada to the client list."

RBA has set-up a long-term supply contract between Securency and Note Printing Australia, the printer of Australia’s banknotes.

Innovia Films said that the agreement, which will see the Guardian polymer substrate incorporated into the country’s next generation of banknotes, underlined RBA’s confidence in the company despite selling its shares.

RBA said: "The use of polymer substrate means that Australia’s banknotes are highly durable and among the safest and most secure banknotes in the world."

Innovia Films chief executive David Beeby added: "The RBA has been an outstanding and committed partner in this joint venture.  

"It has always been their clearly stated policy to grow the business to the point where it would be divested once it held a strong position in the market, and that time has certainly arrived.

"This exciting acquisition reflects our continued commitment and strategic investment pattern in our core markets of labels, tobacco, packaging and security."