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Financial Services

Rosebank Industries shares on front foot after week of big developments

Rosebank Industries PLC (AIM:ROSE) shares were on the front foot Friday, up 4% at 342.1p, heading into the weekend positively after a week in which the industrial investor unveiled a $3.05 billion move for US groups MW Components and CPM, funded by a £1.9 billion institutional raise and a smaller retail offer.

A reverse takeover, announced Tuesday, sees the company buying the two businesses from funds managed by American Securities, with the deal backed by a fully underwritten placing at 330p a share and new debt facilities.

Rosebank said the acquisition would leave pro forma leverage at about 2.75 times EBITDA.

MW Components generated 2025 revenue of $500 million, while CPM posted $713 million, and Rosebank is targets margin improvement at both businesses under its “Buy, Improve, Sell” model.

The company confirmed the institutional raise had brought in about £1.9 billion, and a day later, it said the retail offer raised a further £7.7 million at the same 330p price.

On Friday morning, Rosebank published its admission document for the post reverse takeover vehicle, and gave notice for the proposed EGM - to take place on 23 March - to vote on the deal.

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