Rosebank Industries in talks to buy ECI for under $1.9 billion

LONDON - Rosebank Industries plc, a prominent player in the industrial sector, confirmed today that it has resumed discussions with private equity firm Cerberus Capital Management, LP. regarding the potential acquisition of Electrical Components International, Inc. (ECI). The deal, valued at less than $1.9 billion, would see Rosebank taking over the US-based electrical distribution systems manufacturer, which serves a variety of industrial markets.

The terms of the proposed acquisition are still under wraps, but Rosebank indicated that the transaction aligns with its acquisition strategy. To finance the deal, Rosebank plans to raise approximately £1.2 billion through a combination of a fully underwritten equity issue priced at £3 per share and new debt facilities. This fundraising initiative is currently in discussion with shareholders, who will have the opportunity to participate along with prospective new investors.

Completion of the acquisition is contingent upon several conditions, including the finalization of due diligence, transaction documentation, necessary regulatory approvals, and the approval of Rosebank’s shareholders. Additionally, Rosebank will need to publish an admission document for re-admission to the AIM market of the London Stock Exchange (LON:LSEG).

In accordance with AIM Rule 40, trading of Rosebank’s ordinary shares has been temporarily suspended to ensure compliance with market regulations until the admission document related to the proposed acquisition is published. If the transaction does not proceed and an admission document is not issued, Rosebank will announce the lifting of the suspension.

The company has stated it will continue to make announcements as required by the AIM Rules concerning any significant developments during this period. This information is based on a press release statement.

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