Mountaingate Capital (“Mountaingate”), a Denver-based private equity firm focused on partnering with founders and entrepreneurs to execute transformative growth strategies in the lower middle-market, today announced the sale of Damotech, the leading warehouse rack safety expert, to Vance Street Capital (“Vance Street”). As part of the transaction, both Mountaingate and management will reinvest significantly alongside Vance Street.
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Led by CEO, Eric Naaman, since 2010, Damotech is the leading provider of aftermarket rack safety solutions in North America, offering a comprehensive suite of engineering services, built-to-spec repair and protection products, and proprietary software to meet clients’ safety needs.
Mountaingate first invested in Damotech in 2023 after a multi-year relationship with the executive team. Over the past two years, Damotech has experienced transformative growth driven by heavy investments in production automation, more than doubling the employee base, and integration of two highly strategic add-on acquisitions. These initiatives led to Damotech delivering EBITDA growth of over 4x during that time period.
“We aligned with Mountaingate around an ambitious shared vision for growth and they steadfastly supported that plan. Mountaingate’s style of founder-friendly growth investing paired with their consistent reinforcement of our culture created an ideal partnership,” commented Mr. Naaman. “In just over two years, we achieved what we envisioned to accomplish in five and they ensured we found another great equity partner to continue the uninterrupted growth of the past 15 years.”
Bennett Thompson, Co-Founder and Managing Director of Mountaingate, noted “It has been tremendously rewarding to support the world-class management team at Damotech as they executed the plan we collectively envisioned at the outset of our partnership. They have become a go-to resource for their clients’ safety solutions inside the warehouse while also developing a unique culture of exceptional employee experience and achievement. We are thrilled to continue to participate in this great growth story going forward with Vance Street.”
Corbin Barnds, Vice President of Mountaingate, added “We would like to thank Eric and the Damotech management team for trusting us as their partner. We are proud to have played a part supporting the transformational growth of Damotech.”
Damotech and Mountaingate Capital were advised by Harris Williams. Hogan Lovells, BCF Business Law, and Davies Ward Philips & Vineberg served as counsel in the transaction.
More about Damotech
Damotech is a rack safety specialist based-in Boisbriand, Quebec, providing engineering services and rack safety repair & protection products. As the largest provider of rack safety solutions in North America, Damotech comprehensively solves warehouse rack safety challenges through inspections delivered by the industry’s most knowledgeable engineers and the highest quality rack repair & protection products available in the marketplace. Damotech strives to provide a permanent solution to recurring rack damage while helping clients create safer work environments for their employees. For more information on Damotech, please visit www.damotech.com.
More about Mountaingate Capital
Mountaingate Capital is a Colorado-based private equity firm that specializes in partnering with founders and entrepreneurial companies to accelerate growth and build industry leaders. Mountaingate’s focus on organic growth, coupled with its customer-centric buy-and-build approach for add-on acquisitions, and shared equity ownership with management, creates more value for the end customer, while forging stronger, more collaborative, and more successful investment partnerships with management teams. With over $1.4 billion of assets under management, Mountaingate targets investments in marketing services, business services, specialty manufacturing and distribution. For more information on Mountaingate, please visit www.mountaingate.com.
More about Vance Street Capital
Vance Street Capital is a middle-market private equity firm focused on investing in highly engineered solutions businesses across the industrial technology, medical, life science, aerospace, and defense sectors. Vance Street works with management teams and family owners to accelerate revenue growth, enhance operational performance, and acquire strategic assets for companies within their investment portfolio. For more information, please visit www.vancestreetcapital.com.
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Contacts
For more information please contact:
Bennett Thompson, Managing Director
Phone: 303-390-5001