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UK Firm Aims for US$2.2Bn Transatlantic Takeover
17 Feb
Summary
- Rosebank plans to raise £1.9 billion in London.
- The capital will fund the acquisition of two US industrial firms.
- This move aims to bolster the UK market's status.
Rosebank is embarking on a significant transatlantic expansion, announcing plans to raise £1.9 billion in London. This capital infusion is earmarked for the acquisition of two American industrial firms, CPM and MW Industries, with a combined purchase price of approximately £2.2 billion.
Simon Peckham, a prominent UK entrepreneur and the boss of Rosebank, expressed optimism that this move would inspire other companies to pursue similar capital-raising initiatives in the UK. He highlighted that Rosebank has secured £3 billion in equity from UK markets over the past year, underscoring his confidence in the UK's ability to support large-scale investments.
The targeted US companies, CPM and MW Industries, are currently owned by the private equity firm American Securities. This acquisition follows Rosebank's previous £1.5 billion purchase of ECI, an electrical-components manufacturer, from Cerberus last year, a turnaround that is reportedly progressing as planned.
Peckham's venture aims to conduct a major deal annually. He emphasized that his commitment to listing and raising capital in the UK is driven by financial logic and the pursuit of optimal returns for Rosebank shareholders, with an intent to generate substantial profits and contribute tax revenue within the UK.
