Rosebank​ Eyes US Electrical Firm in £1.14B Acquisition

⁢ Updated⁣ June⁤ 6, 2025
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Rosebank Industries, established by Melrose’s former leaders, is set to raise ⁣approximately £1.14 billion to acquire Electrical Components International ⁢(ECI), a U.S.-based electrical distribution systems ​manufacturer. This move marks Rosebank’s first major acquisition.

The deal, valuing ECI at nearly $1.9 billion, will be funded through debt⁤ and an institutional capital raise at‍ £3 per share, the company said ⁢Friday.Rosebank, led by Simon Peckham, aims ​to replicate the “buy, improve, sell” strategy that proved successful at Melrose.

Peckham said the ECI acquisition is the “first⁤ step ‌on the journey,” expressing confidence in⁤ unlocking ECI’s‍ potential for employees, customers, and shareholders. Rosebank intends to double shareholder investment within⁢ three to five years through performance ​enhancements.

ECI,with $1.3 billion in revenue last year, specializes in wire ​harnesses and controls for major industrial clients. Rosebank plans to elevate ECI’s ‍adjusted operating margin from 13% ⁣to‌ at least 18%,and ⁤it’s adjusted earnings ‍margin to a minimum of ⁢20%.

The company will continue ECI’s strategy of acquiring smaller, high-margin businesses using​ existing cash flow. Shareholders will vote​ on the acquisition ‍July 1.

What’s next

Rosebank plans to focus on improving ‍ECI’s performance and integrating it into its portfolio, with the goal ⁢of ‍increasing profitability and shareholder value‌ in the coming years. ⁢The acquisition ‌signals a ⁢notable step in Rosebank’s growth strategy and its ambition to ⁣create value‌ through industrial ⁢turnarounds.