A company in Dowagiac that makes rivets for the trucking industry has been acquired by a Grand Rapids private equity investment firm. This story was originally published by GR-based MiBiz. It was written by reporter Jayson Bussa and is used with permission.
(Link to original story: https://mibiz.com/sections/manufacturing/auxo-investment-partners-acquires-dowagiac-rivet-manufacturer-specializing-in-trucking-industry)
Private equity firm Auxo Investment Partners will add to its existing capabilities in the fastener space with the acquisition of a Dowagiac-based manufacturer of rivets.
The Grand Rapids-based Auxo announced that it has purchased Securit Metal Products Co., a 70-year-old company in Dowagiac. The company manufactures both solid and tubular rivets that are used in industries such as automotive, heavy transportation, construction and agriculture.
The deal is Auxo’s sixth within the state of Michigan and the company’s 14th overall.
“Securit has built an exceptional reputation for service quality, timeliness, and delivery — as well as an enviable workplace culture that you just don’t see every day,” Jeff Helminski, Auxo co-founder and managing partner, said in a statement.
“I have never heard customers rave about a supplier the way customers talk about Securit,” Helminski added. “We are excited to partner with (President) Bryan (Knoll) to further solidify Securit’s strong position in the industry through the deployment of Auxo’s growth playbook and exploring smart ways to maximize synergies.”
The trucking industry is one of Securit’s primary markets, where its rivets are used in trailer assembly. That industry in particular has seen a boom as the economy works to shake the supply chain pressures that developed during the COVID-19 pandemic. Many trucking companies have been working to expand and update their fleet of trailers.
“In today’s manufacturing environment, where companies are navigating supply chain disruptions resulting from having shipped production offshore to save a few cents per part, we see reshoring efforts increasing demand for domestic production as purchasing departments begin to account for risk-adjusted total landed costs in their sourcing decisions,” Helminski said. “Securit is positioned to step up and deliver for American manufacturing customers given our available production capacity and ample supply of talented labor in Southwest Michigan.”
In an announcement about the deal, Auxo also pointed to its existing presence in the fastener industry with its acquisition of Warren-based Prestige Stamping LLC, which manufactures custom-engineered washers and stampings. Auxo anticipates synergies between both companies.
Advisers and lenders on the latest transaction included Miller Johnson PLC, Barnes & Thornburg LLP, KSM, BHS Insurance, Strategies Wealth Advisors, Krauter & Co., Thomas Brady & Associates, Miedema Appraisals, Mercantile Bank of Michigan and Oxer Capital.
Auxo also recently entered the railroad business after acquiring a majority stake in the Bluefield, W. Va.-, and Roanoke, Va.-based maintenance company Genesis Rail Services in October of 2021 followed by the purchase of Ferrovia Services LLC, an Auburn, Ala.-based railroad vegetation management company.