Rosebank Raises $1.54 Billion to Partly Fund ECI’s Acquisition
As part of its Institutional Capital Raise plans, the UK-based Rosebank Industries has announced that it has mopped up gross proceeds of approximately $1.54 billion via the issue of 380 million New Ordinary Shares at an issue price of $4.07 per share.
As per the announcement, Rosebank Industries has entered into an agreement to acquire Electrical Components International (ECI), a private US-based market leader in critical electrical distribution systems. Rosebank will finance the acquisition of ECI through debt facilities and a fully underwritten Institutional Capital Raise.
The funding, which comprises an institutional placing in the UK and elsewhere and a private placement to a limited number of institutional investors in the US, plus $900 million of New Debt Facilities split across a $400 million term loan and a $500 million revolving credit facility.
Rosebank also intends to raise up to approximately $10.85 million through the Open Offer to allow Rosebank’s shareholders who have not been invited to participate in the Institutional Capital Raise to subscribe for the new ordinary shares at the issue price.
ECI is an electrical components business focused on North America, which accounts for around 80% of its $1.3 billion in 2024 revenues at adjusted operating margin of 13%, and where it has market leading positions principally producing wire harnesses and controls, often for large blue-chip customers in the industrial, electrification, HVAC and appliance end markets.
“ECI has performed well in the first four months of 2025, with adjusted EBITDA and margins increasing by approximately 2%,” Rosebank said in a statement. The company aims to double shareholders’ investment within three to five years through cost savings, restructuring and potential add-on acquisitions.
Acquisition for Cash Enterprise Value
ECI will be acquired for cash for an enterprise value of less than $1.9 billion on a debt and cash free basis representing approximately 9x expected 2025 Adjusted EBITDA (9.8x 2024 Pro forma Adjusted EBITDA).
Pursuant to Rule 14 of the AIM Rules, the company’s existing ordinary shares will remain suspended from trading on AIM until the Admission Document is published, which is expected to be at or around 7 a.m. (London time) on or around 11 June 2025, the company said in a regulatory disclosure with London Stock Exchange (LSE).
Subject to the approval of the transaction resolutions by Rosebank shareholders at the General Meeting on 1 July 2025, the admission of the new ordinary shares is expected to take place at 8 a.m. (London time) on 3 July 2025 and dealings in them are expected to commence at that time.
Subject to the satisfaction or, where appropriate, waiver of the conditions to the acquisition of ECI, it is expected that acquisition completion will occur in the third quarter of 2025. On completion of the acquisition, in accordance with AIM Rule 14, the admission of the ordinary shares will be cancelled and application will be made for Readmission of the Enlarged Group.
Rosebank’s Chief Executive Simon Peckham said that they were grateful to the company’s shareholders and lending institutions for their support of Rosebank’s first acquisition.
“We are excited by the significant opportunities that ECI presents to drive profit improvements and deliver excellent returns for all shareholders as we employ Rosebank’s ‘Buy, Improve, Sell’ strategy and capitalise on its already strong market positioning and experienced management team,” he added.
