Private investment firm Auxo Investment Partners acquired Golden State Assembly, a wire/cable assembly and harness manufacturer.
- California-based company maintains collaborative partnerships with some of the world’s most recognized technology companies
- With a strong foothold in the booming electric vehicle space and industrial equipment sectors, and rapidly expanding sales to the medical device, specialty vehicles, energy, and electronics industries, GSA is well-positioned for continued organic growth
- Auxo and GSA are also eyeing targeted acquisition opportunities in the highly fragmented wire harness manufacturing and assembly market
(Fremont, Calif.) –– Private investment firm Auxo Investment Partners announced today that it has acquired Golden State Assembly (GSA), a vertically integrated, complete lifecycle wire/cable assembly and harness manufacturer headquartered in Fremont, Calif. 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 primarily 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 that range from Fortune 50 companies to small and medium-sized organizations. GSA also provides value-add manufacturing services such as kitting, electromechanical assemblies, and outsourced quality control processes, and has in-house machine shop and PCB assembly capabilities that allow the company to deliver new projects in record time with high quality from the start.
Spurred by an increased global focus on climate change, the $17.5 billion EV market is expected to grow considerably in the coming years, a trend similar to that of the booming private space industry. That offers GSA opportunities for significant expansion, as do recent trends towards the reshoring of U.S. domestic manufacturing and the heightened importance of reliable and responsive supply chain partners.
“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,” said Cesar Madrueno. “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.”
“We are thrilled to partner with Cesar and Yesenia to further solidify GSA’s strong position serving some of the world’s fastest growing industries,” said Jeff Helminski, co-founder and managing partner of Auxo Investment Partners. “By drawing on Auxo’s playbook for developing growth-focused infrastructure and maximizing both organic and acquisitive growth opportunities, we can strengthen GSA’s preexisting relationships with renowned tech companies and foster new partnerships in a variety of sectors. 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.”
Opportunities for Growth and Scale
The global market for EVs is expected to increase by more than 10% annually through 2026. GSA is poised to capitalize on EV market growth by leveraging its strong existing relationships with leading companies in the sector and forging new ones.
Additionally, supply chain disruptions –– brought on by COVID-19, geopolitical uncertainty, and natural disasters –– have prompted US manufacturers to streamline and localize supply chains, notably around electronics. That’s significant given GSA’s proximity to leading technology giants in the heart of Silicon Valley, which need access to complex, quality sensitive and often quick-turnaround supplies of wire harnesses and cable assemblies as they become a greater necessity for industries in the region.
“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. We look forward to collaborating with Cesar and pursuing both new customer growth and targeted acquisitions that add capabilities that complement GSA’s unique product offerings.”
Advisors and lenders on the transaction included Miller Johnson PLC, Barnes & Thornburg LLP, BDO USA LLP, Advantage Benefits Group, Aon Plc, Krauter & Co., Thomas Brady & Associates, and Mercantile Bank of Michigan.
Prior to GSA, Auxo acquired 15 companies, most recently Securit Metal Products, a manufacturer of solid rivets. Prior to Securit, Auxo acquired Genesis Rail Services and Ferrovia as part of its burgeoning railroad services platform. Auxo had also 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. Its 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 was named after the ancient Greek goddess of growth, and the firm 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, Mich.-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