Golden Gate Capital to acquire majority stake in DMC Power
Golden Gate Capital, a private equity investment firm, has revealed its plans to acquire a majority equity stake in DMC Power, a US-based provider of proprietary connector technology systems for high voltage power infrastructure.
DMC Power is known for designing and manufacturing superior connection systems for transmission, distribution, substation, and industrial projects globally.
The unique Swage system by DMC Power, featuring custom-designed Power Connectors and a patented 360° Radial Swage Tool, assists utilities worldwide in completing their projects seamlessly.
Tony Ward, who will continue in his role as Chief Executive Officer, will also remain a significant shareholder of the company. The financial details of the deal have not been disclosed.
Tony Ward said: “Thanks to our dedicated team and productive partnership with Bridgepoint, DMC Power has grown rapidly over the past decade and established itself as an industry leader. Our success is reflected in the strong and longstanding relationships we have created with our customers, who have come to value the unmatched quality, service and lead times our platform provides.
“We are confident Golden Gate Capital is the ideal partner for the next leg of our journey, as their deep industrial expertise and additional development resources will fuel our continued market expansion and ability to serve new and existing customers.”
This acquisition will see Bridgepoint, a global private equity firm, exiting its investment through the sale of its stake to Golden Gate Capital. Bridgepoint had maintained its investment in DMC Power since 2013, when it sold Permaswage to Precision Castparts Corporation.
Bridgepoint had perceived DMC’s potential to evolve into an independent, innovative industrial technology company capable of producing more energy-efficient, cost-effective, and sustainable connection solutions for the North American power and utility industry.
DMC Power operates two manufacturing facilities in Carson, California and Olive Branch, Massachusetts, along with several distribution facilities strategically located across North America. With a team of over 200 employees, the company also leads its category in employee health, safety, and environmental sustainability.
Javier Puig — Golden Gate Capital Managing Director said: “DMC Power is a true pioneer of next-generation power connectors. There is strong momentum already underway at the Company and we look forward to working with Tony and the rest of the team to capture even more opportunities across the dynamic power landscape.”
The acquisition is contingent on the fulfillment of customary closing conditions.