Worcester-based technology manufacturer has completed a second acquisition in a matter of days to the tune of £10m, with the legal support from law firm Shakespeare Martineau.
AIM listed group, Solid State plc set its sights on Crawley-based manufacturer and distributor of electro-mechanical products Willow Technologies Limited along with its US-based subsidiary to both increase geographical reach and increase product offering to the Group’s existing client base.
The deal completes just days after the announcement of Solid State’s acquisition of Active Silicon.
Keith Spedding, partner and business transaction and growth specialist at Shakespeare Martineau, advised Solid State plc on the legal aspects of the acquisition, said: “This is the seventh acquisition we’ve supported Solid State with. This is another prime example of the current deals market, which is moving at pace and another great example of a highly successful entrepreneurial Midlands business.”
Solid State plc produces computing, power and communications products, and is a value added supplier of electronic and opto-electronic components. The acquisition of Willow Technologies Limited complements the Group’s opto-electronic and electronic component supplies capability; significantly enhancing the breadth of the Group’s offering, adding further scale, strength, and depth in electronic component supplies.
Willow Technologies Limited also brings with it a range of own brand electro-mechanical products under the Durakool brand and a range of glass to metal seals under the Hermaseal brand.
Gary Marsh, CEO at Solid State plc, said: “Increasing our range of own brand products and value-added services is a key part of our growth strategy, Willow Technologies Limited will help us meet this objective. This is another exciting milestone in our journey and we are grateful for the on-going advice and support from Keith and the Shakespeare Martineau team.”
The initial consideration of £10m, which, when adjusted for the cash on the balance sheet, resulted in an effective net initial consideration of approximately £5.5m and has been funded by the Group’s existing cash resources and banking facilities.