Acquisition increases manufacturer’s exposure to high-growth medical sector

Redditch manufacturer Solid State has bought a £15m-turnover optoelectronics business that will increase its exposure to the niche medical sector.

The AIM-listed business has paid £3.73m for Pacer Technologies, which has offices in Pangbourne, Weymouth and Crawley, as well as an American subsidiary in Florida.

“Pacer is a company that we have known and admired for many years,” said Gary Marsh, chief executive of Solid State.

“Their expertise and product set are complementary to the existing Solid State Group, with the added benefit of enhancing the value added operations and increasing exposure to high growth markets such as the medical sector.”

Solid State has agreed new banking facilities with Lloyds Bank, made up of £6.0m of term loans and a £3.5m revolving credit facility. This will support the purchase and fund the working capital requirements of the enlarged group, including refinancing Pacer’s £3.5m invoice discounting and term loan facilities.