LONDON: Rosebank announced Thursday the acquisition of U.S.-based Electrical Components International (ECI), a market leader in critical electrical distribution systems, in a deal financed through debt facilities and a fully underwritten institutional capital raise of approximately £1.14 billion ($1.45 billion).
The acquisition, Rosebank’s first under its “Buy, Improve, Sell” strategy, aims to enhance shareholder value by transforming industrial businesses in the U.S. and Europe. ECI, a privately held company, specializes in wire harnesses and controls for industrial, electrification, HVAC and appliance markets, with about 80% of its $1.3 billion 2024 revenue coming from North America.
Rosebank will acquire ECI for less than $1.9 billion on a debt-free, cash-free basis, representing about 9 times expected 2025 adjusted EBITDA. The company plans to improve ECI’s operating margin by 5 percentage points, targeting at least 18%, while reducing leverage and optimizing working capital.
“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.
The deal is funded through a £1.14 billion capital raise at £3.00 per share, alongside $900 million in new debt facilities. Shareholder approval will be sought at a general meeting on July 1, with completion subject to regulatory conditions.
Rosebank CEO Simon Peckham said, “We are grateful for shareholders’ strong support. This is the first step on the journey, and we are confident we can help ECI realize its full potential.”
The company also plans an open offer to raise an additional €8 million, allowing smaller shareholders to participate. Rosebank has identified further acquisition targets as part of its growth strategy.