Rosebank boss Simon Peckham last night said ‘nothing is stopping’ other companies from following its example after he unveiled his firm’s latest fundraising to pay for a transatlantic takeover swoop.
Peckham, who is one of the UK’s leading entrepreneurs, revealed that Rosebank is to raise £1.9billion of new capital in London to buy two US industrial firms for around £2.2billion.
‘It would be lovely if us doing it inspired other people to be copycats,’ he said. ‘This will mean we will have raised £3billion in equity from UK markets in the last 12 months.
'We don’t see any reason at all why other companies couldn’t do that. We are big believers you can raise money in the UK market.’
Rosebank’s latest targets are CPM, which supplies processing equipment, and MW Industries, a maker of engineered precision components.
Both are owned by US private equity firm American Securities. The move follows Rosebank’s £1.5billion purchase of ECI, an electrical-components manufacturer, from private equity firm Cerberus last year.
Peckham said the turnaround of ECI is ‘going to plan’.
Rosebank’s deal, and Peckham’s upbeat remarks, will be seen as a fillip for the UK market.
London’s status has come under strain with an exodus of companies either choosing to list elsewhere or being taken over by overseas bidders, in particular from the US.
The London Stock Exchange Group itself is under pressure to improve its performance by US activist Elliott, which has taken a stake.
And last week, the City was left stunned by the announcement that UK-listed investment giant Schroders has agreed – after two centuries as an independent UK firm – to a £9.9billion takeover by US rival Nuveen.
Peckham (pictured) is best known for his previous role as chief executive of Melrose Industries, which took over a string of flagging businesses.
Melrose grew from a start-up to a FTSE 100 business that in the 20 years after its float in 2003 returned £8billion of capital to its shareholders.
It also created controversy with its 2018 takeover of automotive engineer GKN and the private equity style pay packets lavished on top bosses.
Peckham said his aim in his latest venture is to ‘do a deal every year’. He made clear that it was financial logic rather than sentiment that lies behind his commitment to Britain.
Peckham said: ‘I am not here to lobby for the UK stock market, I am just a guy who wants the best possible return for Rosebank shareholders.
We are going to remain UK listed. I want to make a lot of profit in the UK and to pay a lot of tax in the UK to fund the NHS –100 per cent.’
Some have questioned whether Rosebank will be able to squeeze a profit out of the companies it has bought. ‘We have done it in the past at Melrose,’ Peckham said.
