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.
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.
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