Industrial titans consider £1.59bn takeover of US manufacturer
Simon Peckham
The former leaders of manufacturing powerhouse Melrose are considering a £1.59bn takeover of a US manufacturer of electrical components.
Rosebank Industries, set up by ex-Melrose CEO Simon Peckham, has revealed it is in discussions with Cerberus Capital Management to make its first major acquisition, by purchasing Electrical Components International.
Founded in 1953, Missouri-based Electrical Components International has 25,000 employees and 40 global manufacturing locations. It’s one of the world’s leading suppliers of electrical distribution systems, control box assemblies, and other critical engineered components for a range of markets.
If an agreement is reached, Rosebank would also be required to publish an admission document for re-admission to AIM.
In an update to the London Stock Exchange, Rosebank said the acquisition, which is not agreed, would be funded through a combination of a fully underwritten equity issue and new debt facilities.
Rosebank shareholders would also have to approve the deal, which is worth £1.59bn according to Sky News.
Ex-Melrose chair Justin Dowley and vice-chair Christopher Miller both sit on Rosebank’s board.
Together with Peckham, the group is best known for its hostile takeover and subsequent restructuring of GKN and for the high salaries of its leadership team. Peckham earned £31m in 2014 and £43m in 2017 as a result of highly lucrative bonus schemes.
