Solid State to acquire Californian battery systems manufacturer

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Redditch-headquartered Solid State Plc has entered into a conditional agreement to acquire Custom Power LLC for a maximum consideration of $45m.

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Custom Power, a battery systems manufacturer and energy solutions provider based in Fountain Valley, California, is Solid State’s largest acquisition to date.

“This is an exciting move that will combine the battery power capabilities of Custom Power with those of Solid State Plc, allowing our customers access to highly customised power solutions on an international level,” said Mel Weis, CEO of Custom Power. “Both businesses are leaders in this field and together they will benefit from increased reach, resource and expertise.”

Solid State describes itself as a value-added electronics group supplying commercial, industrial and military markets with durable components, assemblies and manufactured units for use in specialist and harsh environments.  

The company’s expansion strategy, through organic growth and acquisitions, is providing increased scale to the group’s capabilities in addition to providing access to markets with historically high barriers to entry.

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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.”