Worcester-based technology manufacturer Solid State plc is set to acquire California-based company Custom Power in a deal worth $45 million.
Established in 1965, Custom Power offers battery systems and energy solutions across a range of sectors including medical, defence and industry.
As producers of components, computing, power and communications products, the acquisition will 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 by 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 Solid State has raised £27.1 million in a placing with investors and an open offer to current shareholders, with the remaining funds coming from Lloyds Bank.
Midlands law firm Shakespeare Martineau, supported both aspects of the fundraising. The fundraising and acquisition are conditional on shareholder approval and are expected to complete in early August.
Solid State was advised on the acquisition by US law firm Frost Brown Todd LLP.
Leading on the deal Keith Spedding, partner at Shakespeare Martineau, said: “With a recession on the cards and uncertainty in the market fundraising is proving particularly difficult for some businesses – the significant sum raised by Solid State is testament to the quality of the business and its growth strategy.
“Solid State is a long-standing client of ours, we have seen them grow from strength to strength and we’re pleased to see them acquire across the pond and utilise the expertise of a law firm within our multi-law connections.”
Gary Marsh, CEO at Solid State plc, said: “Custom Power has significant engineering expertise and strong tooling and test capabilities. The acquisition broadens our product portfolio with a tailorable suite of technologies and provides us with the opportunity to cross sell our enhanced offering to our new, enlarged customer base.
“We’re delighted to see them join the group and pleased the fundraising and acquisition has gone smoothly.”
“Once again, I would like to thank Keith Spedding and the team at Shakespeare Martineau for their support on the fundraise. The team at Frost Brown Todd, introduced by SHMA, provided excellent advice on this our first major US acquisition.”
Get In Touch
How We Can Help
Corporate & Commercial
Our closely-woven practice areas ensure that you can tap into deeply experienced specialists, no matter what challenge or opportunity you face.
Our Latest Corporate Updates
India opens up to collaborations and campuses with international universities
Supreme Court decision in Agnew
Guidance for employers on menopause in the workplace
Employment case law update | Autumn 2023
Our experts are here to answer any questions you might have
If you’d like to speak to a member of our team, please fill out the enquiry form. We will aim to reply to your query within 2 hours
Need to talk to someone sooner? You can call use at the number below