Business
Acquisition of ECI and Capital Raise
Acquisition of ECI and Capital Raise.
About this update from Rosebank Industries Plc
[{"type":"text","content":"\n\nTHIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN ARE RESTRICTED AND ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM THE UNITED STATES OF AMERICA (THE \"UNITED STATES\" OR THE \"US\"), AUSTRALIA, CANADA, NEW ZEALAND, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.\n \nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.\n \n6 June 2025\n \nRosebank Industries plc\n \nAcquisition of ECI and Capital Raise\n \nRosebank is very pleased to announce the acquisition of Electrical Components International (ECI), a private US-based market leader in critical electrical distribution systems, financed through debt facilities and a fully underwritten Institutional Capital Raise of approximately £1.14 billion at an issue price of £3.00 per share. This will be Rosebank's first acquisition under management's successful \"Buy, Improve, Sell\" model of shareholder value creation via the transformation of industrial businesses in the US and Europe, and has the following highlights:\n· ECI is an electrical components business focused on North America, which accounts for approximately 80% of its c. $1.3 billion 2024 revenues at adjusted operating margin of c. 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 \n \n· 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)\n \n· Rosebank is targeting 5 percentage points of operating margin improvement through untapped cost saving and restructuring initiatives, which would take adjusted operating margin to at least 18% and Adjusted EBITDA margin to at least 20%, unlocking the additional potential of the business\n \n· ECI has performed creditably in the first four months of 2025 with Adjusted EBITDA and adjusted operating margin increasing by approximately 2% and has fully recovered all tariffs\n...