Strategy
Our strategy
Employing its proven “Buy, Improve, Sell” business model, the Rosebank team has a long and extensive track record of creating significant value over a three to five year period, and returning proceeds to shareholders.
Rosebank intends to create value in those acquired businesses primarily through:
- Eliminating unnecessary corporate overhead
- Changing the focus of management teams and incentivising those management teams well
- Driving sustainable improvement
- Focusing on profitability and cash generation
- Reinvesting heavily to drive long-term performance
Rosebank aims to double shareholders’ investment in a given acquisition over a three- to five-year investment horizon.
It is the intention of the Directors that Rosebank seek admission of the Ordinary Shares to the Official List and to trading on the Main Market of the London Stock Exchange.
Business model
Possible acquisition opportunities are identified through Rosebank’s own research, as well as through its extensive deal sourcing network, arising from the multiple public and private deals executed by the team in the UK, Europe and the US during their time at Melrose.
A clear focus on acquisitions
While the Directors are focused on acquisitions of companies headquartered in the UK, North America and Europe operating in the industrial or manufacturing sectors with an indicative enterprise value of up to approximately $3 billion, there is no limit as to the number of acquisitions. Rosebank may pursue numerous acquisition opportunities at any one time.
Acquisitions are funded using a combination of the issue of further equity on a pre-emptive basis and prudent bank financing, as well as using Ordinary Shares as an acquisition currency. The pricing of any such issuance of Ordinary Shares will take into account the prevailing market price of the Ordinary Shares, the underlying performance and asset base of the Company and the terms of the relevant transaction and it is possible that new Ordinary Shares may be issued at a price that is lower than the market price of the Company’s Ordinary Shares at that time.
Prior shareholder approval is sought for any acquisition which constitutes a reverse takeover under the AIM Rules.