#USA #New York #Cerberus Capital #Electrical Components International #Rosebank Industries

Cerberus Completes Sale of ECI to Rosebank Industries

Cerberus Capital Management, L.P., renowned globally for its expertise in alternative investing, has just announced the successful completion of its sale of Electrical Components International (ECI) to Rosebank Industries PLC. This transaction is valued at approximately $1.9 billion and underscores the growing synergy between high-performance industrial technologies and dedicated investment management.

ECI stands as a pivotal supplier of complex electrical distribution systems, control box assemblies, and various other critical engineered components. With a robust portfolio serving around 500 customers across the globe, the company operates a network of 39 manufacturing facilities paired with advanced engineering and technical capabilities. The shift in ownership comes after Cerberus acquired ECI in 2018, illustrating its commitment to transforming ECI from a prominent North American manufacturer primarily servicing the home appliance sector into a diversified global player in industrial technology.

The past seven years saw notable expansions for ECI under the guidance of CEO Mike Balsei, who took the helm in 2020. His leadership not only fostered organic growth but also facilitated nine strategic acquisitions that elevated ECI into high-growth and high-value market segments. The profound operational initiatives implemented during this period significantly enhanced profit margins and solidified relationships within its vast blue-chip customer base.

Mike Sanford, Cerberus's Global Head of Private Equity, expressed his sentiments on this journey, noting, "It has been a tremendous journey with ECI and its team over the past seven years. Together, we transformed the Company into a diversified industrial technology platform by entering new markets, both organically and through acquisitions, and broadening its offerings. With its commitment to innovation and excellence, ECI has earned a trusted reputation among a global customer base that we're extremely proud of. We thank Mike and the entire ECI team as they move forward into their next chapter."

Echoing Sanford’s sentiments, Balsei highlighted the exceptional talent within ECI's team. He stated, "We've expanded into strategic markets, strengthened our operations for efficiency and scale, and deepened our technical and engineering capabilities, further setting ECI apart in the industry. We're grateful to Cerberus for their unwavering support during our growth and look forward to building on our momentum with Rosebank in the years ahead."

Legal counsel for the transaction was expertly managed by Debevoise & Plimpton LLP. Financial advisors involved included Goldman Sachs & Co. LLC, Rothschild & Co., and Guggenheim Securities, LLC, all of whom played key roles in navigating this multifaceted deal.

About Cerberus

Established in 1992, Cerberus remains a pillar in alternative investing, managing approximately $65 billion across various asset classes, including complementary credit, real estate, and private equity strategies. Their approach involves an intricate understanding of capital structures and operational abilities to improve performance and enhance long-term value.

About ECI

Founded in 1953, Electrical Components International (ECI) is renowned for its advanced solutions in electrical distribution systems and control box assemblies across diversified markets. The company employs around 20,000 individuals and operates 39 manufacturing locations worldwide, establishing itself as a trusted partner for over 450 customers. ECI is dedicated to powering intelligent, connected, and electrified solutions that tackle complex challenges head-on.

As both Cerberus and Rosebank embark on this new chapter, the industry watches closely to see how this transaction impacts the ever-evolving landscape of industrial technology. This sale not only highlights Cerberus's successful investment strategy but also how ECI’s innovative solutions continue to pave the way for future advancements in the sector.