Rosebank Unveils Major U.S. Expansion Plan for $3 Billion
Rosebank Industries PLC confirmed that it is in advanced discussions to acquire two U.S.-based industrial businesses in a deal valued at roughly $3.05 billion.
Key Takeaways
- Rosebank is in advanced talks to buy two U.S. industrial firms for about $3.05 billion.
- The deal will be mainly funded through a £1.9 billion equity raise plus new debt.
- Shares were suspended on AIM pending a prospectus.
- The move fits Rosebank’s buy, improve, sell strategy and planned shift to the Main Market in 2026.
The transaction would mark another major step in the company’s rapid expansion strategy and deepen its exposure to high-margin manufacturing segments in North America.
Although the company initially withheld the names of the targets, industry reports identify them as CPM and MW Industries – both currently owned by the private equity firm American Securities.
The Businesses in Focus
CPM operates as a supplier of processing equipment serving the food production and renewable energy sectors, two industries benefiting from structural demand trends tied to food security and energy transition initiatives.
MW Industries, by contrast, specializes in precision-engineered components used across industrial applications. The company provides highly technical parts that typically command stronger margins and long-term supply relationships.
Together, the two businesses would significantly broaden Rosebank’s industrial footprint and strengthen its exposure to resilient end markets.
Financing Structure
Rosebank intends to fund the acquisition through a multi-layered financing package. The core component is a fully underwritten equity raise of approximately £1.9 billion, equivalent to around $2.59 billion.
In addition, the structure includes:
- A retail offer of up to £10 million for UK shareholders
- New debt facilities to complement the equity financing
Following the announcement, trading in Rosebank’s shares on the AIM market was temporarily suspended pending publication of a prospectus outlining full deal details.
Regardless of whether this specific acquisition proceeds, Rosebank has confirmed plans to transition its listing from AIM to the Main Market of the London Stock Exchange in the second quarter of 2026. The move signals management’s intention to reposition the company as a larger-scale industrial consolidator with broader institutional investor appeal.
The “Buy, Improve, Sell” Playbook
Led by former executives of Melrose Industries, Rosebank operates under a disciplined “buy, improve, sell” model. The strategy focuses on acquiring under-optimized industrial businesses, improving operational efficiency, and targeting EBITDA margins of around 20% over a three- to five-year investment horizon.
If completed, this would represent Rosebank’s second major deal in less than a year. In August 2025, the company finalized a $1.9 billion reverse takeover of Electrical Components International (ECI), underscoring its aggressive expansion approach.
The proposed U.S. acquisitions suggest that Rosebank is accelerating its consolidation strategy, positioning itself as a significant transatlantic industrial operator with ambitions beyond its AIM roots.
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