Mountaingate Capital Supports Damotech in Strategic Combination with Mac Rak to Form Rack Safety Leader
DENVER, January 9, 2024 – Damotech, a leading rack safety specialist, announced the completion of a strategic combination with Mac Rak, a Lockport, IL based rack repair and protection manufacturer. This strategic combination forms North America’s preeminent rack safety specialist, providing engineering services, repair & protection products to a broad base of enterprise clients across a diverse range of end markets. Damotech is a value-added partner to its clients, comprehensively solving critical warehouse rack safety challenges through engineering services, inspections, load capacity calculations, employee safety training, rack repair, protection products and a software platform.
Led by Eric Naaman since 2010, Damotech has experienced uninterrupted growth in each of the past 13 years, while earning a stellar reputation as the leading rack safety partner. Together with Mac Rak, Damotech has a growing team of approximately 200 employees located across the United States and Canada.
Damotech received a strategic investment from Denver-based private equity firm, Mountaingate Capital (“Mountaingate”), to facilitate the transaction with Mac Rak, fund future growth and enable additional acquisitions.
“We are thrilled to join Eric and Damotech’s talented leadership team on this journey. With warehouse environments becoming increasingly complex, Damotech has been able to establish itself as the ‘go-to’ solution for clients looking to improve warehouse safety and reduce costly down-time,” said Bennett Thompson, Managing Director of Mountaingate. “Damotech has a tremendous track record of innovation, a diverse client roster of blue-chip companies, and an inspiring culture that promotes employee engagement and personal growth. We could not be more excited for what’s next for this company in combination with Mac Rak.”
“Alignment with Damotech’s employee-first values and vision of becoming our client’s sole safety solution inside of their warehouse facilities made Mountaingate the perfect partner for us,” said Eric Naaman, CEO of Damotech. “Mountaingate brings extensive experience helping similar businesses to scale aggressively. We look forward to leveraging that experience to further advance the value that we provide to our clients. The partnership with Mac Rak and their team is a significant first step towards achieving our shared vision.”
Hogan Lovells and Davies Ward Phillips & Vineberg served as counsel to Mountaingate in the transaction.
Mountaingate Capital is a Colorado-based, growth-focused private equity investment firm that partners 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 and shared equity ownership with management creates more value for the end customer while forging stronger, more collaborative, and more successful partnerships with management teams. Mountaingate invests in the marketing services, business services, specialty distribution, and specialty manufacturing sectors. For more information on Mountaingate, please visit www.mountaingate.com.
Damotech is a rack safety specialist headquartered in Boisbriand, Quebec, providing engineering services and rack safety repair & protection products. As the largest provider of rack safety solutions in North America, Damotech helps companies keep their warehouses and employees safe by maintaining the integrity of their pallet racking systems. Damotech strives to provide a permanent solution to recurring rack damage while helping clients create safer work environments for their employees. Learn more at www.damotech.com.
For more information please contact:
Bennett Thompson, Managing Director