Grand Rapids, Michigan-based private equity firm Auxo Investment Partners announced Feb. 8 it has acquired two wire harness and cable suppliers: Morgan Royce Industries (MRI) and TACK Electronics. Financial details were not disclosed for either transaction. The acquisitions support Auxo’s recent purchase of Golden State Assembly (GSA), a wire and cable assembly and harness manufacturer in Fremont, California.
Also based in Fremont, MRI is a manufacturer of wire harnesses and box builds, including complete assemblies of cables, electronic components, and metal and plastic housings. MRI serves the manufacturing equipment, medical equipment, telecommunications and power industries.
“We are excited to join GSA and continue providing outstanding manufacturing services to our semiconductor manufacturing customers around the globe,” MRI CEO Larry Johnston said in a news release. “Auxo’s collaborative spirit and philosophy of partnering with founder-led businesses—as well as GSA’s impressive track record as a time-to-market leader in complex cable harness manufacturing—will not only accelerate our continued growth, but also greatly expand our ability to serve the thriving semiconductor equipment industry.”
Founded in 1996 and based in Grand Rapids, TACK manufactures wire harnesses, cable assemblies and box builds. TACK specializes in high-mix and low-volume products for industries such as aerospace and defense, gaming, medical, transportation and battery/energy equipment.
“We are thrilled about our new partnership with Auxo,” TACK CEO Todd Maines said in the release. “Their sophisticated team delivers the perfect blend of support and guidance, which will undoubtedly enhance our operations over the coming years. With GSA, MRI and TACK under the same banner, we’ll be able to provide greater capabilities for our customers and strengthen our position as a leading provider of wire harnesses and cable assemblies.”
Johnston and Maines will remain in their current roles as CEOs of their respective companies, according to the release.
“These new partnerships with MRI and TACK shore up GSA’s position as one of the country’s leading wire harness platforms, and further diversifies its array of service offerings,” Auxo co-founder and managing partner Jeff Helminski said in the release. “MRI’s complementary capabilities and longstanding foothold in the semiconductor industry are a tremendous asset to the platform—particularly as we look to scale GSA’s skillset and capacity and expand its customer base. TACK’s track record of providing white-glove customer service and achieving stellar growth makes it the perfect fit for GSA which, as a time-to-market leader, aims to get its products into customers’ hands swiftly and in turn, bring down its cost curve. We look forward to working with Larry and Todd and drawing on Auxo’s growth-focused playbook to strengthen both companies’ preexisting customer relationships and expand their market share.”
TACK’s acquisition was completed through Auxo’s Michigan Opportunity Fund, according to the release. Advisors and lenders on the transaction included Miller Johnson PLC, Barnes & Thornburg LLP, BDO USA LLP, Advantage Benefits Group, Aon Plc, Krauter & Co., Strategies Wealth Advisors, Thomas Brady & Associates, and Mercantile Bank of Michigan.