Rosebank in talks over $3bn acquisition of two PE-owned US businesses

(Sharecast News) - Rosebank Industries confirmed on Monday that it is in advanced talks about the potential acquisition of two private equity-owned US-based businesses for about $3.05bn (£2.2bn). Rosebank said the potential deal is in line with its acquisition criteria and, if it proceeds, would be funded through a combination of a fully underwritten equity issue of about £1.9 bn and new debt facilities. The fundraise would be executed by way of a firm placing concurrent with a retail offer of up to £10m for UK retail shareholders and investors.

Rosebank also confirmed that it still plans to move to the main market of the London Stock Exchange in the second quarter regardless of whether the deal goes through.

Rosebank did not say which private equity firm it was looking to buy the businesses from, but Sky News reported earlier that it was American Securities.

According to Sky, the portfolio companies are CPM, a supplier of processing equipment for sectors such as food and renewable energy, and MW Industries, which makes engineered precision components for industrial users.

As per AIM rules, Rosebank's shares have been temporarily suspended from trading until such time as the MTF admission prospectus in relation to the potential transaction has been published.