A new acquisition boosts Auxo Investment Partners’ growing wire harness and cable manufacturing platform as industry demand continues to grow.
The Grand Rapids-based private equity firm recently completed a deal that makes SOS Manufacturing Inc., a Wisconsin-based manufacturer and supplier of custom wire harnesses and cable assemblies, the fourth company in the platform. Terms of the deal were not disclosed. Wire To Board Connectors
The deal comes on the heels of two acquisitions earlier this year — for Grand Rapids-based Tack Electronics Inc. and California-based Morgan Royce Industries — that followed the acquisition of California-based Golden State Assembly in 2022.
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Jeff Helminski, co-founder and managing partner of Auxo, said SOS will offer unique functions for the platform, such as capabilities relevant to the supercomputing industry.
“There are some things (SOS) does in that space that are quite unique and they’re also — much like the other companies that we’ve partnered with — very good at customizing applications to a customer’s need for some unique aspect of their product that is related to the wire harness and how it either fits into or functions within their product,” Helminski said.
Founded in 2001, SOS also specializes in the manufacturing of heavy power cables, cable braiding and custom-designed complex box builds. The company has experienced consistent revenue growth, and the recent push toward domestic reshoring and supply chain reliability has led to increased reliance on manufacturers such as SOS.
“The reshoring trends in industrial production should bode well for this industry with more production coming back from low-cost overseas countries back into America,” Helminski said.
Age demographics among the roughly 1,500 U.S. wire harness companies also present an opportunity for Auxo, as many owners approach retirement age and seek a succession or exit plan, Helminski noted.
“We think this has the potential to be a very significant investment for us,” Helminski said. “We think by building a national platform in this space, we can offer some unique capabilities to customers and to owners of those companies that want to be part of something larger and solve for that succession planning solution many of them are looking for.”
The SOS deal comes as growing demand for cable assembly and electronic manufacturing designs drives industry expansion across the world.
SOS executives say steady growth across the sectors in which the company operates, including computing and electronics, will enable the company to expand its manufacturing role with existing industry leading partners.
“Throughout the years, SOS has cultivated deep and longstanding relationships with suppliers and end-customers, and as part of Auxo’s growing platform, we know we’ll be able continue that time-honored tradition,” Nick Stoner, CEO of SOS Manufacturing, said in a statement. “As we look for ways to build on our dedicated customer base and attract new clients, Auxo’s reputation for purposeful expansion and tight collaboration with founder-led businesses make them an ideal partner. We couldn’t be happier — especially as the industry continues to see strong growth.”
Stoner and SOS Sales Manager Dave Rogers will remain in their current roles.
Advisers and lenders on the transaction included Miller Johnson PLC, Barnes & Thornburg LLP, BDO USA LLP, Advantage Benefits Group, Aon Plc, Krauter & Co., and Mercantile Bank.
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