Solid State to acquire US battery systems manufacturer
Solid State is set to acquire a US company in a deal worth $45 million.
Established in 1965, Californian firm Custom Power offers battery systems and energy services across a range of sectors, including medical, defence and industry.
As producers of components, computing, power and communications products, the acquisition is designed to complement Solid State’s existing portfolio and add scale to the group’s power capabilities, particularly within Custom Power’s specialist sectors.
In addition to product development, the acquisition will strengthen the group’s engineering team, adding electronic engineering and battery management systems software capabilities and experience, as well as adding US manufacturing capabilities and contract manufacturing relationships in Mexico.
To fund the deal, Redditch’s Solid State raised £27.1m in a placing with investors and an open offer to current shareholders, with the remaining funds coming from Lloyds Bank.
The acquisition of Custom Power is expected to be highly complementary to Solid State, bringing new and increased capabilities to the group’s power business, particularly in the defence, medical and industrial markets.
“Internationalisation is one of our four strategic objectives with the rationale behind this being to continue to develop the percentage of overseas sales into the group thus diversifying the business,” said Solid State’s CEO Gary Marsh. “The other three strategic goals are broadening our technology portfolio, own brand products and investment and development of our talent.”
Marsh added: “Whilst the external labour market is challenging, we have excellent retention of our workforce which reduces some of the need to recruit additional skills and allows us to focus on upskilling our existing employees. We are supporting many of our existing workforce through internal and external programmes to support their personal and professional development needs. Succession planning and talent management will play a key part in delivering the business strategy.”