Why We Invested: IEC Holden

_{Image courtesy of IEC Holden}

MKB Equity Partners (“MKB”) is delighted to announce its growth investment in IEC Holden Inc. (IEC or the Company). IEC is a Canadian manufacturer of precision electric motors and components for electrified transportation and renewable energy infrastructure. With facilities in Canada, the United States, and Mexico, IEC provides design-for-manufacturing and scalable production capacity tailored to the needs of global OEMs and their suppliers. Founded in 1905, the Company has positioned itself as a best-in-class engineering and manufacturing partner in sectors undergoing structural transformation. MKB is thrilled to partner with IEC to support it in meeting rising demand for electrified systems and clean energy infrastructure, while reinforcing supply chain resilience across North America.

The Problem

Electric motors and the systems they drive are the single largest use of electricity in the world, with some estimates suggesting they consume approximately half of all power globally¹. Motors are a core enabling technology across all four of MKB’s focus verticals, with uses in electric vehicles, HVAC units, power generation, and industrial applications. As our economy progressively electrifies and decarbonizes, the role of efficient, specialized, purpose-built motors will only increase. Power demand is growing from electrification and data centers, further increasing the importance of efficient electric motors to support a strong and reliable power grid. Yet, despite this critical role, North American supply of advanced electric motors and components remains limited, with much of the global production concentrated in Asia. OEMs, whether startups or large mature corporates, face increasing supply chain risk and long lead times for components. Additionally, many OEMs lack the expertise in manufacturing design for motors and prefer to focus on their core intellectual property, go-to-market strategies, and manufacturing further downstream. As the role of electric motors grows, a reliable and cost-competitive North American supply is needed to lower energy use, reduce emissions, and support a strong and reliable power grid.

The IEC Solution

• Key Markets: IEC addresses the growing demand for high-efficiency electric motors by providing specialized contract manufacturing capabilities across multiple end markets, including industrials, power generation, off-highway, heavy-duty vehicles, and rail. Its broad sector presence positions it to benefit from accelerating electrification trends and expanding motor penetration in each of these verticals. Additionally, with manufacturing presence in Canada, the US, and Mexico, the company has the operational flexibility to meet the demands of a rapidly changing supply chain.
• Unique Expertise: As one of the few contract manufacturers focused on electric motors, the company occupies a unique strategic position at the intersection of motor design expertise and flexible manufacturing. Electric motors are often outside the core competency of OEMs, leading them to outsource to specialized partners with deep technical know-how, proven quality systems, and the ability to scale efficiently. IEC has proven for decades its commitment to quality, speed, and flexibility, delivering mission-critical components on time and on budget while safeguarding intellectual property and reducing supply chain risk. IEC has the expertise to help clients launch new products, scale products, or reduce costs and complexity on existing products.
• Customer Base: The company’s position in the value chain enables it to serve a diversified customer base of established and emerging OEMs as well as Tier 1 suppliers. This mix balances long-term stability with exposure to high-growth segments, while its predominantly U.S. customer footprint aligns with reshoring and domestic content requirements under recent industrial and trade policies.

Strengthening local motor production is pivotal to advancing the clean energy transition, enhancing supply chain resilience, and meeting growing electrification demand. Reflecting these trends, the U.S. electric motor market is expected to grow at a 5-8% CAGR through 2030.

Looking Ahead

IEC is led by Rob Briscoe, a visionary CEO with a clear long-term ambition, whose leadership is both strategic and heart driven. This approach has earned him strong trust and loyalty from employees, reinforcing a high-performing, cohesive, accountable organizational culture. Under his guidance, the company executes with operational excellence on behalf of its customers and inspires a culture to sustain growth.

We’re pleased to welcome IEC Holden to the MKB portfolio. We look forward to partnering to drive innovation and growth across the electric motor and electrification markets.

For further information, read the IEC press release here.

1 Energy-Efficiency Policy Opportunities for Electric Motor-Driven Systems
International Energy Agency International Energy Agency. Paul Waide and Conrad U. Brunner