Private equity firm buys MRI, Tack Electronics

GRAND RAPIDS, Mich.—A private equity firm bolstered its portfolio through the addition of two companies in the wire harness and cable industry.

Grand Rapids-based Auxo Investment Partners on Feb. 8 said it acquired Tack Electronics, also based in Grand Rapids, and California-based Morgan Royce Industries (MRI), two manufacturers of custom wire harnesses, cable assemblies and box builds for the semiconductor equipment, aerospace and defense, gaming, medical, transportation and energy equipment industries. Terms of the deals were not disclosed.

MRI manufactures wire harnesses and box builds—complete assemblies of cables, electronic components, and metal/plastic housings—for the semiconductor manufacturing equipment industry. The company also serves customers in the medical equipment, telecommunications and power industries.

The new additions follow Auxo's purchase of wire and harness manufacturer Golden State Assembly and help expand the firm's growing wire platform.

"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," said Jeff Helminski, co-founder and managing partner of Auxo Investment Partners.

According to Auxo, Tack CEO Todd Maines and MRI CEO Larry Johnston will remain in their current roles.

Jack Kolodny, managing partner at Auxo Investment Partners, said the team is excited to partner with the leadership at Tack and MRI as part of an ongoing acquisition strategy within the wire harness manufacturing industry.

"The customers that Tack and MRI serve are some of the most exciting companies driving innovation in their respective industries. Together, GSA, Tack and MRI will be well-positioned to serve these customers and capitalize on the adoption of their products," Kolodny said. "As part of a common platform, the companies will be able to meet growing demand from new and existing customers, realize new operational efficiencies and foster deeper relationships across industries."

Tack's acquisition was completed through Auxo's Michigan Opportunity Fund (MOF) which closed in 2022. The acquisition brought Auxo's two funds, Auxo Growth Holdings (AGH) and the MOF, into a common wire harness platform.

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