One of the founders of Melrose Industries PLC (LSE:MRO), alternately criticised as a financial raider or hailed as a highly successful investment company, is reportedly coming back to the market with a new investment vehicle.
Simon Peckham, one of the three original founders of Melrose, is behind Rosebank Industries, which is looking to raise £40 million and float on AIM, Sky News has reported.
Peckham will be able to use some of his large Melrose bonus, where he and fellow founder Christopher Miller and ex-finance director Geoffrey Martin reportedly received the lion’s share of the £180 million bonus.
Rosebank will hunt for new takeover targets with the same 'buy, improve, sell' mantra as Melrose, with the initial public offer due to take place after next month's general election.
Like Melrose, which has since become a pure aerospace company after stripping out other assets from its 2018 GKN acquisition, the new vehicle will also seek to buy mid-sized industrial and manufacturing companies in the UK, Europe or North America.
An investor presentation seen by Sky says that Rosebank will focus bonuses on a "shareholder-aligned long-term incentive plan ... very similar to that used for Melrose" and plans to move from AIM to London's main market once the first acquisition is identified and completed.