Cherry Tree Advises SOS Manufacturing on its Sale to Auxo Investment Partners
“We first met the Cherry Tree team a few years ago. Their early advice was helpful in our decision not to sell then but rather continue growing and strengthening our business. When we were ready to sell, we engaged Cherry Tree. They led a disciplined process that created a competitive situation among multiple qualified buyers. The Cherry Tree team provided invaluable advice during the process and was with us every step of the way through closing. Cherry Tree worked closely with our financial and legal advisors and provided the overall project management to get a successful transaction completed. The result was a great outcome for our shareholders, employees, and customers.”
— Ray Stoner and Steve Oakins, Owners
Industrial supplier to the automotive, aerospace, computer, electronic, networking and security sectors
Manufacturer of custom wire harness and cable assemblies
Sale to Financial Buyer
SOS Manufacturing has announced that it has been acquired by Auxo Investment Partners, a Michigan based private equity firm. This transaction marks Auxo’s fourth acquisition in the space as the firm builds out its wire harness platform.
SOS Manufacturing makes specialized wire harnesses for business customers all over the world. The company was organized in 2001 and is currently headquartered and builds product in its facility in Roberts, Wisconsin. Major sectors served include automotive, aerospace, computer, electronic, networking and security. In addition, the Company offers engineering assistance, CAD drawings, complete box builds/product assembly and part kitting.
Cherry Tree’s Role:
Cherry Tree was engaged to advice SOS Manufacturing and its shareholders in identifying the best partner to help SOS achieve its next phase of growth through a sale of the business. The objectives were to maximize shareholder value and terms of a transaction, while managing an efficient closing process. Cherry Tree’s role included preparing evaluation materials, identifying and screening buyers, soliciting proposals, negotiating terms, supporting due diligence, and facilitating the closing of a transaction. It was especially important to the shareholders and management team that the process was well planned and efficiently executed, to not disrupt the core business operations, and to complete the transaction in a timely manner.
About Auxo Investment Partners
Auxo Investment Partners is a Grand Rapids, Michigan-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.
About Cherry Tree & Associates
Cherry Tree & Associates is a private investment banking firm headquartered in Minneapolis, Minnesota. Founded in 1980, it specializes in M&A transactions for both buyers and sellers of middle market companies. Additionally, it conducts private placements for high quality, entrepreneurially managed growth companies, provides strategic advisory services for CEOs and boards of directors, and prepares fairness opinions and other valuation services.
Cherry Tree & Associates provides investment banking services through our FINRA-licensed broker dealer.