Auxo Investment Partners acquires harness manufacturer

From left, Jeff Helminski, Jack Kolodny and Fred Tedori, co-founders and managing partners of Auxo. Courtesy Auxo Investment Partners

A local private equity firm acquired a wire/cable assembly and harness manufacturer based in California.

Grand Rapids-based Auxo Investment Partners said Friday, March 11, it acquired Fremont, California-based Golden State Assembly (GSA).

Terms of the deal were not disclosed.

GSA founders Cesar and Yesenia Madrueno will retain a significant interest in the company and will remain in their operating roles.

Founded in 2007, GSA designs and assembles wire harnesses and cable assemblies for a variety of customers in the automotive, aerospace, industrial equipment, medical device, electronics, specialty vehicle and energy industries.

GSA also provides value-added manufacturing services such as kitting, electromechanical assemblies and outsourced quality control processes, and it has in-house machine shop and PCB assembly capabilities.

The $17.5 billion electric vehicle (EV) market is expected to increase by more than 10% annually through 2026, and the booming private space industry also is expected to continue growing considerably. As a result, GSA expects to expand quickly in the coming years.

“Working with Auxo will enable us to affirm our customer-first mindset within our existing customer base while introducing us to manufacturing partners who increasingly demand the types of highly responsive, complex and quality-sensitive solutions that we are accustomed to providing,” Cesar Madrueno said.

“The Auxo team understands how important hands-on collaboration and customer loyalty have been to our continued growth and success. We are exceptionally proud of our team and culture of excellence, and we are excited to bolster our market position by expanding our sales infrastructure and leveraging new opportunities.”

Jeff Helminski, co-founder and managing partner of Auxo Investment Partners, said his firm is “thrilled” to partner with the Madruenos.

“By drawing on Auxo’s playbook for developing growth-focused infrastructure and maximizing organic and acquisitive growth opportunities, we can strengthen GSA’s pre-existing relationships with renowned tech companies and foster new partnerships in a variety of sectors,” Helminski said. “GSA has a deep commitment to customer and employee relationships that make for a passionate workforce and a satisfied clientele, and we can’t wait to carry that spirit forward.”

Supply chain disruptions brought on by COVID-19, geopolitical uncertainty and natural disasters have prompted U.S. manufacturers to streamline and localize supply chains, notably around electronics. GSA’s proximity to tech giants in Silicon Valley is expected to give the company a competitive advantage.

“GSA’s products are indispensable to the production of electronic products for companies based in tech hubs like Silicon Valley and around the country,” said Jack Kolodny, managing partner of Auxo investment Partners. “In a fragmented market with hundreds of competitors, GSA’s reputation for unrivaled customer service, product development support and culture of continuous improvement sets the company apart and makes it well-suited to take advantage of growing demand for electrical components.”

Advisers and lenders on the transaction included Miller Johnson, Barnes & Thornburg, BDO USA, Advantage Benefits Group, Aon, Krauter & Co., Thomas Brady & Associates and Mercantile Bank of Michigan.

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