Components manufacturer snapped up by electronics group

A magnetic components specialist has been acquired in a £1.4m deal by Redditch-based Solid State.

Gateway Electronic Components will join Solid State’s components division, Solsta, adding a complementary product line to the group’s portfolio.

Established in 2000, and based in Nantwich, Gateway is a specialist in ferrite and magnetic components and solutions. Ferrite is commonly used in electromagnetic compatibility (EMC) components for interference suppression; products in the emerging industrial IoT technology sector; and, technologies critical to the power generation, transmission and distribution industry, amongst many other electromechanical applications.

Solid State, the manufacturer of computing, power, and communications products, says Gateway already supplies into many of its target growth markets and has respected industry talent.

The acquisition will be funded from the group’s existing cash resources.

John Macmichael, managing director of Solsta said: “Gateway broadens our product line within sectors that are already core to our footprint, whilst equally giving Solid State an additional aligned client base for its existing product range. The drive to higher margin own-brand products is further enhanced through the addition of the machined ferrite range of products.

“We welcome our new colleagues from Gateway to the Solid State Group. The cultural fit has always been a very important element of our M&A strategy, so it is pleasing to join forces with a like-minded team.”

Martin Ford, founder and managing director of Gateway said: “We’ve built an excellent business in Gateway which fits very neatly into the culture of Solid State. Their drive to innovate gives me confidence that our technology will be more widely built into customer solutions. As founder of Gateway, I am pleased for our loyal staff that the next phase of growth for the business will be under the capable stewardship of Solid State.”