Melrose founders’ Rosebank strikes £1.4bn deal

Rosebank Industries, led by Simon Peckham, acquires ECI for £1.4bn. Rosebank Industries has announced its acquisition of Electrical Components International (ECI) for £1.4 billion, marking its first major purchase. The deal will be funded through debt facilities and a £1.14 billion capital raise, with shares issued at £3 each. Simon Peckham, a seasoned City dealmaker and founder of Rosebank, established the investment vehicle last year with six former Melrose executives to continue their successful “buy, improve, sell” strategy from Melrose. Peckham previously guided Melrose through significant deals, including the contentious acquisition of GKN Aerospace in 2018. ECI will be bought at an enterprise value of under $1.9 billion, approximately nine times its full-year adjusted earnings, as announced by Rosebank. The company is aiming to double shareholder investments within three to five years and seeks to enhance operating margins by five percentage points through restructuring and cost savings. “We are grateful for the strong support from shareholders,” said CEO Simon Peckham. Rosebank aims to revitalise businesses by improving working capital and reducing leverage. Russ Mould from AJ Bell noted the ambitious nature of this endeavour, emphasising the need for substantial capital to drive acquisitions and achieve desired improvements.