Mountaingate Capital Partners with Damotech and Mac Rak to Lead the Rack Safety Industry

In a strategic combination that will position it as North America's leading rack safety specialist, Damotech has announced its merger with Mac Rak. This partnership brings together two industry powerhouses to offer a comprehensive range of engineering services, repair and protection products, and software platforms to enterprise clients across various sectors.

Damotech, renowned for its expertise in rack safety, has experienced remarkable growth over the past 13 years. Led by Eric Naaman, the company has established itself as a trusted partner in solving critical warehouse safety challenges. With Mac Rak joining forces, Damotech now boasts a team of approximately 200 employees across the United States and Canada.

To facilitate the merger and fuel future expansion, Damotech received a strategic investment from Mountaingate Capital, a Denver-based private equity firm. Mountaingate has a track record of partnering with businesses to accelerate growth and build industry leaders. The firm's deep experience and customer-centric approach make them an ideal partner for Damotech's vision of becoming the go-to solution for warehouse safety.

Bennett Thompson, Managing Director of Mountaingate, expressed his excitement about the partnership, stating, "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 downtime." Mountaingate recognizes Damotech's innovation, client roster, and employee-centric culture as the driving force behind their success.

The alignment of values and vision between Damotech and Mountaingate was a crucial factor in the partnership. Eric Naaman, Damotech's CEO, emphasized the shared goal of becoming their clients' ultimate safety solution. The collaboration with Mac Rak marks the first step towards realizing this shared vision.

Hogan Lovells and Davies Ward Phillips & Vineberg provided legal counsel to Mountaingate throughout the transaction, further solidifying the partnership's foundation.

Mountaingate Capital is a growth-focused private equity investment firm based in Colorado. With a focus on organic growth and a customer-centric approach, Mountaingate partners with founders and entrepreneurial companies to create industry leaders. They invest in sectors such as marketing services, business services, specialty distribution, and specialty manufacturing.

Damotech, headquartered in Boisbriand, Quebec, is the largest provider of rack safety solutions in North America. The company offers engineering services, repair and protection products, and strives to provide permanent solutions for recurring rack damage. By maintaining the integrity of pallet racking systems, Damotech helps companies create safer work environments for their employees.

In conclusion, the strategic combination of Damotech and Mac Rak, supported by Mountaingate Capital, positions them as the leaders in the rack safety industry. With their extensive range of services and products, this partnership will enable them to continue providing innovative solutions to their clients' critical safety challenges. As Damotech and Mac Rak join forces, they are set to redefine warehouse safety standards across North America.