3rd Mar 2026 11:44
(Alliance News) - Rosebank Industries PLC Tuesday reported a wider annual loss, but said it was tracking in line with expectations for the new year, as it confirmed a USD3.05 billion acquisition.
The London-based takeover vehicle is focused on industrial and manufacturing firms whose performance Rosebank thinks it can improve, similar to FTSE 100 constituent Melrose Industries PLC.
Its pretax loss widened to USD51 million in 2025 from USD11 million in the seven months that ended December 31, 2024. Revenue jumped to USD445 million from none the year prior. Chief Executive Simon Peckham called 2025 "a transformational year" which saw Rosebank acquire St Louis, Missouri-based electrical manufacturing firm Electrical Components International Inc, back in August.
"The early actions that we and management have taken give us further confidence that we will deliver the improvements we outlined for ECI and achieve our adjusted operating margin targets of at least 18%. For 2026, driven by actions within our control, we remain confident in the year ahead," Peckham noted.
Rosebank added that it is on track to move to London's Main Market from AIM in the second quarter of 2026.
Also on Tuesday, the company disclosed a new USD3.05 billion acquisition plan. It has agreed to buy two US companies: ASP MWI Holdings Inc, including subsidiaries under the MWI Components brand, and ASP CPM Holdings Inc. Both are managed by private equity firm American Securities LLC and will be bought on a debt and cash-free basis, Rosebank said.
The deal reflects enterprise values of USD950 million and USD2.1 billion for MWI Components and CPM respectively.
"Both businesses fit with Rosebank's tried and tested playbook," Rosebank said. It described MW Components as "a leading US provider of highly engineered, bespoke fasteners, springs and precision metal components, with strong market positions" and USD500 million in 2025 revenue.
Rosebank noted CPM's pro forma revenue as USD713 million in financial 2025, and said: "CPM is an innovative leader in highly engineered processing equipment used in oilseed, animal feed production, renewable energy, plant‑based foods and industrial materials, with market leading brands and strong customer relationships with blue-chip clients."
Part of the takeover will involve improving both firms' operating margins via "restructuring, simplification and operational initiatives", Rosebank said, and reducing leverage to roughly 2.75 times earnings before interest, tax, depreciation and amortisation.
It plans to fund the deal through new debt facilities and a GBP1.9 billion capital raise priced at 330 pence per share. It noted that Rosebank directors, employees and associates have agreed to subscribe for about GBP12.3 million in shares, at the same price. Separate to the capital raise, Rosebank is launching a retail offer for new and existing investors, also at 330 pence per share.
Rosebank shares are suspended until a prospectus regarding the transaction is published. Shares had traded 2.1% lower at 329.00 pence around 1000 GMT on Monday, before suspension.
The acquisition is slated to close in the second quarter of 2026, conditional on regulatory clearance and approval from shareholders at a meeting scheduled March 23. Shareholders will also vote to approve the placing and retail offer. Rosebank noted that its move to the Main Market will proceed irrespective of the acquisition.
Chief Executive Simon Peckham commented: "This transaction represents the next step of the Rosebank journey, which began with our successful acquisition of ECI. MW Components and CPM are high-quality businesses with much unrealised potential and we are confident that our proven approach will unlock substantial value for shareholders."
By Holly Munks, Alliance News reporter
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.
Related Shares:
Rosebank