D.A. Davidson & Co. announced today that it served as exclusive financial advisor to Palm Peak Capital, LLC, in its acquisition of Domaille Engineering, and in raising senior secured debt financing and equity co-investment from Stellus Capital Management, LLC (“Stellus”) in support of the transaction.
“D.A. Davidson’s deep industry knowledge in communications technology and digital infrastructure, extensive relationships in the sector, and transaction expertise played a critical role in driving this outcome,” commented Jeremy Stone, Managing Partner at Palm Peak. “We appreciate the D.A. Davidson team’s support on our acquisition of Domaille and efforts in securing an attractive and flexible financing package, which enabled us to achieve an accelerated closing on the acquisition.”
Founded in 1990 and headquartered in Rochester, Minnesota, Domaille was previously a division of ADDMAN Engineering. The Company produces innovative equipment and tools used to manufacture advanced high bandwidth fiber optic cables. The Company’s diverse customer base includes leading cable assembly houses and commercial clients serving data centers, telecommunications providers, and other enterprise end markets. Domaille is led by an experienced leadership team with deep technical expertise and extensive industry experience.
“The fiber optics industry is experiencing robust growth, underpinned by accelerating demand from data centers, telecom networks, and the ever-increasing internet-of-things. Data center expansion—driven by generative AI, continued cloud migration, and surging traffic—is expected to fuel double-digit annual growth in fiber demand through the end of the decade,” commented Dante Pavone, Vice President at Palm Peak. “In parallel, robust telecom investment is expected to continue through deployment of more fiber-based networks, large-scale fiber-to-the-home subsidies, and rising global bandwidth needs as more products and services become digital.”
“Palm Peak has acquired the market leader and industry gold standard for fiber optic cable manufacturing equipment,” commented Brad Gevurtz, Managing Director in the Technology Investment Banking Group at D.A. Davidson. “This transaction marks a significant step in building Palm Peak’s footprint in the booming fiber optic/digital infrastructure market.”
“We are pleased to have worked with Palm Peak on their acquisition of Domaille, and to arrange and place the acquisition financing to support the transaction,” commented Yaron Redlich, Head of the Financial Sponsors Group at D.A. Davidson.
“Our goal was to support Palm Peak in delivering speed and certainty to close to the seller, while also delivering a flexible and attractive capital solution that aligns with Palm Peak’s growth plans, and we are pleased with this outcome,” stated Amy Johnson, Managing Director, Head of Debt Advisory at D.A. Davidson. “This transaction demonstrates our Debt Advisory team’s capability set in arranging acquisition financing solutions for financial sponsors.”
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