Acquisition vehicle Rosebank Industries (ROSE) has announced a potential £1.9 billion capital raise. Therefore, the firm’s shares have been suspended from trading on the AIM market until it makes a further announcement.
| Share price: 328p (susp) | PE: n/a |
| Market cap: £1.8bn | Yield: n/a |
‘Buy, Improve, Sell’
Rosebank, which operates a ‘Buy, Improve, Sell’ model, is in talks to buy two private equity owned US businesses. The two assets, which the firm hasn’t yet revealed, have a headline enterprise value (equity plus debt) of $3 billion.
The firm says the deal is ‘in line with the company’s acquisition criteria’ and will be funded through the capital raise. It will also offer retail shareholders the chance to participate via an offer of up to £10 million.
The company intends to move its listing to the main market in Q2 whether or not the deal goes through. After listing at 250p in July 2024, Rosebank shares soared to 900p before falling to their current level around 325p.
The stock fell sharply in June 2025 when Rosebank raised £1.14 billion in new shares to make its first acquisition. It bought US electrical components maker ECI for an enterprise value of around $1.9 billion.
Investors hoped Rosebank was ‘the new Melrose’, back when Melrose (MRO) ran a similar ‘Buy, Improve, Sell’ model. Most of the senior management actually came from Melrose, which helped its reputation, but it hasn’t lived up to the hype.
In November, the firm outlined a two-year restructuring programme for ECI which included reducing 25% of ECI’s sites. Costs are seen at $80 million, yet returns are seen at just $30 million which sounds far from optimal.
The board said it was ‘highly confident’ of ECI achieving the FY25 targets it published when it announced the deal. Therefore, investors will be keen to hear about further progress when the company reports later this month.
Read the press release here: https://www.rosebankindustries.com/investors/
You might also like these stories:
