June 28, 2022 Auxo Investment Partners Acquires Breyden Products

Private investment firm Auxo Investment Partners announced today that it has acquired Breyden Products, Inc.

• Operating under the Precision Products Group (PPG) brand, Breyden Products manufactures a complete line of military specification braided lacing tapes, twines, cords and sleeving for the electrical, defense and aerospace markets
• Deal follows Auxo’s 2020 acquisition of Paramount Tube—which also operates under the PPG platform—a dominant player in custom-engineered spiral wound tubular products
• Transaction Part of Auxo and PPG’s plans to build a leading, diversified platform of niche manufacturers with defensible market positions focused in the electrical, defense, medical and consumer packaged goods sectors.

(Columbia City, IN) – Private investment firm Auxo Investment Partners announced today that it has acquired Breyden Products, Inc., which will operate under the Precision Products Group (PPG) platform and brand. PPG is the parent company of Paramount Tube—a premier manufacturer of industrial tubing—as well as Euclid Medical Products.  

As PPG’s first acquisition under the ownership of Auxo, the deal advances Auxo and PPG’s plans to build a diversified platform of niche manufacturers with defensible market positions that unite ecofriendly solutions, mechanical strength, and material know-how under a collective focus on heat solvation, thermal control, and electrical insulation. The platform is seeking additive acquisitions with like-minded manufacturers focused in the electrical, defense, medical and consumer packaged goods sectors.

Headquartered in Columbia City, Ind., Breyden Products manufactures a complete line of military specification braided lacing tapes, twines, cords and sleeving that are used to secure and protect electrical components in the electric motor, defense and aerospace markets. Drawing on over 75 years of manufacturing experience, the company has refined a highly technical braiding and coating process that results in industry-leading products that are preferred by discerning end-market customers.

Since 1991, Breyden has fostered relationships with best-in-class distributors in the aerospace and defense industries, as well as the burgeoning electric motor and transformer sectors.

“The Breyden team is beyond excited about the partnership with Auxo, PPG and their portfolio of world class manufacturers,” said Mike Zuber, Vice President of Sales for Breyden Products. “Our deep and long-standing relationships with leading channel partners will support the continued growth and diversification of PPG in the aerospace, defense and electrical markets.”

Added Chad Heathco, CEO of Precision Products Group: “We are thrilled to add Mike and the Breyden team to our growing PPG portfolio of specialty manufacturers. By bringing Breyden and our Paramount Tube division together under one roof, we will be able to provide the electric motor, defense and aerospace markets with an unprecedented product offering that leverages deep manufacturing expertise and material know-how.”

Specialty Manufacturing Platform Poised for Growth

Beyond continued growth in the defense and aerospace markets, the combination of Breyden and PPG’s Paramount Tube division is expected to greatly expand opportunities and market share in the electric motor market. Pairing the former’s braided manufacturing process with the latter’s state-of-the-art spiral-wound manufacturing process will offer customers a wider range of product solutions that improve product quality and performance.

Paramount Tube is the dominant player for mission-critical, small diameter spiral-wound and extruded tubular products known for providing highly customized, tight tolerance and uniquely shaped solutions. Applications include components for electric motors, transformers, fuses, automotive, single-dosage medications, pharmaceutical packaging, eco-friendly consumer packaging, and military ordinances.

“The acquisition of Breyden expands Paramount Tube’s portfolio of offerings which enables our team to better serve our customers by providing a deeper and broader product line of custom solutions,” said Tim Shaw, Vice President of Sales and Marketing of Paramount Tube. “We look forward to maximizing the value and benefits that this combination brings to existing and new customers.” 

“From the moment we met Mike and Jay, we were immediately impressed with Breyden’s unique manufacturing capabilities, customer-focused culture and dominant market position,” said Auxo co-founder and Managing Partner Jeff Helminski. It’s clear the company’s values are closely aligned with ours — and its success has been driven by the leadership team’s unrelenting pursuit of excellence and customer service. We’re excited to honor the legacy they have built and support them in leveraging their unique capabilities to expand their global footprint both organically and acquisitively.”

Advisors and lenders on the transaction included Miller Johnson PLC, Barnes & Thornburg LLP, BDO USA LLP, Marsh & McLennan, Aon Plc, Krauter & Co., Thomas Brady & Associates, Mercantile Bank of Michigan, and Greyrock Capital.

Prior to Breyden Products, Auxo acquired 16 companies, most recently Golden State Assembly, a wire harness and cable assembly manufacturer, and Securit, a manufacturer of solid metal rivets. In late 2021, Auxo acquired Genesis Rail Services and Ferrovia as part of its burgeoning rail platform. Earlier, Auxo acquired Bernal Rotary Dies, Atlas Die, AtlasFlex, Midway Rotary Die Solutions, DieCraft Engineering & Manufacturing, and GC Dies, which comprise the Impact Converting and Systems Solutions platform. It’s marine platform, Auxo Marine, was formed by the acquisitions of M/G Transport Services, a leading inland barge transportation and logistics company, and Andrie, the premier Great Lakes marine services company serving customers with challenging safety and specialty material handling and transportation requirements. Other acquisitions include: Paramount Tube and Euclid Medical, niche manufacturers of custom-engineered spiral wound tube and pharmaceutical packaging; Prestige Stamping, a high-speed manufacturer of custom engineered stampings for the fastener industry; and Altus industries, a leading supplier of medical carts and workstations.

A Long-Term, Collaborative Approach

Auxo continues to pursue additional opportunities in the specialty manufacturing space, and more broadly seeks to partner with companies that meet the following investment criteria:

• North America-based
• Manufacturing, industrial, value-added distribution or business services industries
• EBITDA (cash flow) of $2-$20 million
• Owner-operators seeking retirement, family succession planning solutions or existing teams seeking to grow their businesses
• Prefer majority-control investments but will consider select minority-partner opportunities

About Auxo Investment Partners
Auxo Investment Partners is a Grand Rapids, Michigan-based private investment firm that partners with owners and management teams of companies at transition points in their history. Auxo’s flexible capital model allows for long-term, growth-oriented decision-making without artificial deadlines. The structure was specifically designed for family businesses facing a generational transition or management teams seeking a partner to fuel growth and achieve their full potential with a long-term investment approach. Auxo’s unique philosophy aligns the interests of its companies, their employees, the communities in which they are located and its investors to achieve optimal outcomes for all. As our name reflects, we are not merely investors, but partners. For more information, please visit www.auxopartners.com

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