InforCapital
M&A Transaction•

Cerberus Closes $1.9B ECI Sale - InforCapital

Rosebank to acquire ECI for $1.9B via £1.14B capital raise, marking its first major industrial buyout move.

AM
Alvaro de la Maza

Partner at Aninver

Key Takeaways

  • Sector: Manufacturing.
  • Geography: United States.

Analysis

Rosebank has entered into a definitive agreement with an affiliate of Cerberus Capital Management to acquire Electrical Components International (ECI) in a transaction valued at under $1.9 billion (£1.5 billion). The all-cash acquisition is being made on a debt-free and cash-free basis.

ECI, a market-leading US-headquartered manufacturer of electrical distribution systems, serves over 450 customers globally across industrial technology, electrification, appliances, and HVAC sectors. The company operates 39 manufacturing facilities worldwide, employing approximately 20,000 people. In 2024, it reported $1.28 billion in pro forma revenue and $193 million in pro forma adjusted EBITDA.

Rosebank views the acquisition as its first strategic move to acquire high-potential industrial businesses with margin improvement opportunities. The board projects improving EBITDA margins from 15% to 20% and operating margins from 13% to 18%, backed by operational enhancements and investment.

To finance the acquisition and partial debt repayment, Rosebank will raise £1.14 billion ($1.48 billion) through the issue of 380 million New Ordinary Shares at £3.00 per share. The raise includes both a UK-based institutional placing and a US private placement.

Additionally, the company plans an €8 million open offer to allow existing shareholders to participate, while Rosebank co-founders and non-executive directors will contribute around £13.1 million via a connected subscription.

The capital raise is not contingent on deal completion. If the deal does not close, funds will be temporarily invested or returned to shareholders under applicable regulations. Financial advice for the transaction was provided by Barclays, Citigroup, and Investec.

Rosebank’s board unanimously recommends the acquisition and capital raise, with directors and co-founders already backing 8.6% of the current shares.