Auxo Investment Partners acquires Avon Machining

Grand Rapids-based Auxo Investment Partners has acquired Avon Machining, a precision maker of gears, axle shafts and other components, with plans to propel the manufacturer to major growth.

The investment firm's acquisition of the Shelby Township-based company comes with a 111,000-square-foot plant and 110 highly skilled machinists, said Jeff Helminski, managing partner at Auxo.

Terms of the purchase from Ann Arbor-based Speyside Equity were not disclosed.

Avon's revenue also was not disclosed, though Helminski said it falls squarely within the firm's target range of $25 million to $65 million.

"The management team was looking for the right partner who they had aligned values with and who could bring the ability to really help them grow and get to the next level when the owners decided it was time for them to move on," Helminski said.

Avon, founded in 1974, machines parts for a range of industries, including construction, mining, agriculture, automotive, chemical, oil and gas, and defense. The company's unique market niche and base of highly specialized employees put it in a solid position to scale, Helminski said.

"When people talk about skilled tradesmen, this is the quintessential application," he said.

The company's management team and employees will remain as Auxo looks to build the business by overcoming the labor shortage and hiring more machinists.

"With their resources and commitment to growth, we will continue to build on Avon Machining's legacy of quality, innovation, and customer satisfaction, while expanding our capabilities and offerings," Avon CEO Chad Fietsam said in a news release.

The acquisition marks the fourth platform investment in the firm's Michigan Opportunity Fund, a private equity venture operated by Auxo and backed by Michigan business leaders including Doug DeVos and Roger Penske.

Last year, the fund took over Dowagiac-based supplier Securit Metal Products, which makes semi-tubular rivets for semi-truck trailers, automotive subassemblies, boats, bourbon barrels and cookware.