Golden Gate Capital's Acquisition of DMC Power: Fueling Growth in Power Infrastructure

Introduction:

DMC Power, a leading designer and manufacturer of connector technology systems for high voltage power infrastructure, is set to undergo a significant transformation. Golden Gate Capital, a private equity investment firm, has announced its definitive agreement to acquire a majority equity stake in DMC Power. This acquisition highlights Golden Gate Capital's commitment to investing in innovative industrial technology companies and positions DMC Power for accelerated growth in the power and utility industry.

A Partnership for Growth:

Under the leadership of Chief Executive Officer Tony Ward, DMC Power has established itself as an industry leader with strong relationships and a reputation for unmatched quality, service, and lead times. With the support of Bridgepoint, a global private equity firm, DMC Power has grown rapidly over the past decade. Bridgepoint recognized the company's potential as a standalone industrial technology company, capable of delivering energy-efficient, cost-effective, and sustainable connection solutions for the North American power and utility industry.

Golden Gate Capital, with its deep industrial expertise and additional development resources, is seen as the ideal partner for DMC Power's future growth. The firm's commitment to capturing opportunities across the dynamic power landscape aligns perfectly with DMC Power's goals. The partnership aims to expand the company's market reach and enable them to better serve existing and new customers. With a focus on next-generation power connectors, DMC Power is well-positioned to capitalize on secular tailwinds and increase adoption in various applications and end markets.

Growth Trajectory and Achievements:

DMC Power's growth journey under Bridgepoint's ownership has been nothing short of remarkable. The company has experienced a 20-fold increase in annual profits during this period. By investing in new connector technology, DMC Power has transformed the high voltage electricity transmission and distribution market. The sales of its innovative products are rapidly growing in North America and show potential for international expansion.

The company's success can be attributed to its dedicated team, productive partnership with Bridgepoint, and commitment to industry-leading standards. DMC Power's focus on employee health and safety, as well as environmental sustainability, sets them apart as a category leader. The company operates two manufacturing facilities in Carson, CA, and Olive Branch, MS, and has multiple strategically located distribution facilities across North America.

Closing Remarks:

The acquisition of DMC Power by Golden Gate Capital marks an exciting chapter in the company's journey. With a shared vision for growth and innovation, this partnership is expected to propel DMC Power to even greater heights in the power infrastructure industry. The transaction is subject to customary closing conditions, and both parties are optimistic about the future.

About DMC Power:

DMC Power is a leading designer and manufacturer of high-quality connection systems for transmission, distribution, substation, and industrial projects. Their proprietary Swage system, equipped with custom-designed Power Connectors and a patented 360° Radial Swage Tool, simplifies project completion for utilities worldwide.

About Golden Gate Capital:

Golden Gate Capital is a San Francisco-based private equity investment firm with a long-term investment philosophy. With over $19 billion in cumulative committed capital, Golden Gate Capital has a successful history of investing across various industries and transaction types. Their expertise includes going-privates, corporate divestitures, recapitalizations, debt, and public equity investments.

About Bridgepoint:

Bridgepoint is a leading private asset growth investor, specializing in private equity and private debt. With over $40 billion of assets under management and a strong global presence, Bridgepoint consistently delivers strong returns through cycles. Their North American team focuses on investing in growth companies across multiple sectors, including Technology, Advanced Industrials, Healthcare, and Business and Financial Services.

Note: The content of this blog post is based on a press release by Golden Gate Capital and DMC Power.