Rosebank Industries said it had raised capital at 330p per share to finance the purchases of MW Components, a manufacturer of fasteners and precision metal parts, and CPM, which produces equipment used in the production of animal feed.
The deal marks Rosebank’s largest transaction since it acquired Electrical Components International, a US wire harness manufacturer, for $1.9 billion in 2025. The company was founded by Simon Peckham, a former executive at Melrose Industries, with the aim of replicating Melrose’s strategy of buying underperforming industrial businesses, improving them and later selling them at a profit.
Melrose became widely known in the City following its hostile takeover of GKN in 2018.
Peckham described the newly targeted businesses as high-quality operators with strong market positions and healthy profit margins. He noted that, despite economic uncertainty, Rosebank had successfully issued shares at a small premium, raising one-and-a-half times its market capitalisation.
Around $1.7 billion of the newly raised funds will be used to reduce debt at MW Components and CPM. Peckham said lowering leverage would strengthen their capital structures and unlock further investment and growth opportunities.
The move stands out against a broader trend in London markets, where US private equity firms have frequently taken advantage of lower UK valuations to acquire listed companies. Instead, Rosebank is pursuing expansion in the American industrial sector.
The group, which listed just 18 months ago on London’s junior market with an initial £50 million fundraising, is expected to transfer to the main market of the London Stock Exchange in the second quarter of this year.
Peckham signalled ambitions for further expansion, saying Rosebank aims to complete another deal within the next 18 months. He added that the company intends to double shareholder value over the next three to five years.
Tom Johnson, global head of capital markets at Barclays, said investor backing for such transactions would strengthen confidence in UK capital markets and reinforce London’s role as a leading global financial centre.
Alongside the acquisition announcement, Rosebank published its first full-year results, reporting revenues of $445 million in 2025 and a pre-tax profit of $52 million. This marked a turnaround from a $1 million loss recorded in the seven months to December 31, 2024.
Despite recent disruption to global trade flows linked to tariff policies introduced under Donald Trump, Peckham said the businesses would have limited exposure. MW Components operates largely within North America, while CPM manufactures products close to its end markets, reducing reliance on cross-border imports.
