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.