Rosebank Industries hails 'exciting first step' as completes ECI deal
Rosebank Industries PLC on Wednesday said it has completed the $1.9 billion reverse takeover of Electrical Components International Inc.
The London-based acquisitions vehicle said the purchase of the St Louis, Missouri-based electrical manufacturing firm was completed on Tuesday, valuing ECI at an enterprise value of around 9 times expected 2025 adjusted earnings before interest, tax, depreciation and amortisation.
To fund the acquisition of ECI, Rosebank back in June confirmed plans to raise £1.14 billion via institutional and private placements priced at 300 pence per share. This was in addition to a €8 million open offer of shares to existing investors, and new loans worth $900 million.
At the time, Rosebank said the takeover was ‘the ’first step in Rosebank’s journey and management has identified numerous further acquisition targets for its ’buy, improve, sell’ model.‘
Rosebank was established in 2024. Its strategy is to acquire quality industrial or manufacturing businesses with strong fundamentals whose performance may be improved.
Chief Executive Simon Peckham said the deal presents an ’exciting first step‘ in Rosebank’s journey to create significant value for shareholders.
Shares in Rosebank were flat at 339.00 pence each in London on Wednesday. It currently has a £963.2 million market capitalisation.
In accordance with AIM requirements, shares in Rosebank will be cancelled and readmitted to trading on Thursday. Its market value on readmission is expected to be around £1.40 billion.
Rosebank said ECI’s first trading was in line with expectations, including a record adjusted operating margin of 15.1%, up three percentage points on prior year. New business wins in the half year were up 28% on prior year and accretive to current margins.
Improvement plans for ECI already underway, Rosebank added.
In addition, Rosebank reported results for the six months to June 30.
Pretax loss ballooned to £32.2 million from £8.6 million as operating expenses soared to £33.2 million from £9.5 million in preparation for the ECI takeover.
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