Rosebank Industries, the listed private equity vehicle established by former founders of FTSE listed British turnaround specialist Melrose, has said it is in discussions with US-based electrical engineering group Electrical Components International over a possible acquisition.
A deal to buy ECI, owned by private equity group Cerberus Capital Management, would be Rosebank’s first, since Simon Peckham and his Melrose colleagues set up Rosebank in 2024.
The deal’s enterprise valuation is estimated to be about $2bn. Rosebank is expected to raise equity financing to fund the acquisition.
Rosebank said ECI was “in line with Rosebank’s acquisition criteria and if it proceeds would be funded through a combination of a fully underwritten equity issue . . . and new debt facilities”.
Peckham, chief executive, told the Financial Times: “We promised from the get go to pursue a number of acquisition opportunities and that’s exactly what we are doing.” He added that ECI was one of several targets Rosebank was looking at. “I’m confident at least one of those will come to fruition,” he added.
Peckham and fellow Melrose co-founder and executive vice-chair Christopher Miller stepped down in 2023 before establishing Rosebank, which is backed by international investors including BlackRock, Norges and GIC.
The executives are hoping to replicate the success of their previous industrial turnarounds that generated significant returns both for themselves and their backers. The two Melrose co-founders and another executive took the major share of a £180mn bonus pot in 2024.
Melrose was listed on London’s junior Aim-market in 2003 with the aim of turning around underperforming industrial businesses under a “buy, improve, sell” approach. It raised £13mn when it listed and went on to raise more than £10bn in equity and £17bn in debt to fund deals.
The FTSE 100 group is now focused on the GKN aerospace business it acquired as part of its controversial £8bn takeover of the British engineer in 2018. Melrose demerged its automotive activities under the name Dowlais in 2023. Dowlais, which makes parts for vehicles, said in January it was in talks to be acquired by American Axle & Manufacturing in a cash-and-shares deal.
Rosebank’s Aim-listed shares were temporarily suspended following the announcement of the ECI talks, which were first reported by Sky News.
