GRAND RAPIDS — Private equity firm Auxo Investment Partners has completed its fifth acquisition in 13 months with a deal for a Warren-based stamping manufacturer.
The deal for Prestige Stamping Inc. marks Auxo’s first foray into custom engineered stampings for the fastener industry.
A high-volume manufacturer of tight-tolerance washers and other stampings, Prestige has invested in developing customized automation and other equipment that’s improved throughput and generated efficiencies at its 100,000-square-foot facility in Southeast Michigan, where the company produces more than a billion washers and metal stampings annually.
Prestige CEO Chris Rink will continue to lead the company after the deal.
Jack Kolodny, managing partner at Auxo, cited the “closely aligned” values of the two companies as being a primary driver in the deal. Auxo pursued a transaction with the company since early in the year.
“We look for different platforms and different dynamics with the sellers,” Kolodny told MiBiz. “Prestige Stamping’s washers really fit (our criteria). … For us, it was the perfect platform, and a platform that we can then grow.”
Terms of the transaction were undisclosed.
Currently, Prestige Stampings, which was founded in 1967, employs 120 people and has more than 200 customers, including in the automotive, construction and agriculture industries, as well as other markets where washers and stampings are needed.
Auxo plans to explore ways to expand the Prestige Stamping business into new sectors, including the aviation, aerospace, defense and heavy truck sectors, according to Kolodny.
Rink said he opted to sell to Auxo “because of the values our organizations share.”
“We think Auxo’s hands-on investment approach will bolster our ability to maintain our vision and ensure a prosperous future for our company and for our long-standing employees,” he added.
Advisers on the deal included Generational Equity LLC, Miller, Johnson, Snell & Cummiskey PLC, Barnes & Thornburg LLP, BDO USA LLP, Tree Line Capital Partners LLC, Mercantile Bank, Aon Plc, Krauter & Co. and Advantage Benefits Group Inc.
The investment in Prestige is Auxo’s first since closing fundraising in September on its first fund, Auxo Growth Holdings I LLC, which netted $50 million from family offices and institutional investors.
In addition to Prestige Stamping, Auxo has acquired three die manufacturers and a New Orleans, La.-based barge company.