Allenton-based Maysteel Industries LLC has acquired DAMAC Products LLC. The transaction closed Dec. 15 for an undisclosed price.
Maysteel designs, engineers and manufactures sheet metal enclosures, electrical cabinets and metal fabricated assemblies for the alternative energy, kiosk, gaming, security, medical, utility and other industries. Its products are manufactured at a 240,000-square-foot facility in Allenton and a 96,000-square-foot plant in Monterrey, Mexico. The company has about 500 employees, 250 of whom are in Wisconsin.
In April, Maysteel was sold for an undisclosed price to Savannah, Georgia-based LJC Investments III LLC, an investment vehicle of private equity firm Littlejohn Capital LLC, by Los Angeles-based private equity firm Revolution Capital Group LLC. At that time, the company indicated it planned to grow into adjacent markets with the additional funding from Littlejohn.
La Mirada, California-based DAMAC, which has about 150 employees, makes data center infrastructure equipment such as server cabinets, wallmount racks, seismic and thermal management products, power distribution equipment and cable runway systems for the cloud computing, cloud storage, colocation, energy, finance, retail and telecommunications industries. Both companies’ products are customized and made with a high level of precision. DAMAC was sold by Chicago-based private equity firm Prairie Capital. It will retain its name and will continue operating out of La Mirada, Maysteel said.
“DAMAC has built its reputation by offering customized products supported by expert engineering and design staffs who collaborate heavily with end user customers to design optimal solutions tailored to individual needs of data center operators,” said Angus Littlejohn, Jr., founder and chairman of Littlejohn Capital. “We are confident that Kevin and his team will leverage the combined companies’ metal fabrication technologies and engineering expertise to grow DAMAC into a key player in the worldwide engineered data center solutions market.”
“This transaction is an important step in our efforts to continue to transform Maysteel by broadening its geographic footprint across North America and leveraging DAMAC’s existing presence in Europe,” said Kevin Matkin, chief executive officer of Maysteel. “In addition, both Maysteel and DAMAC offer customized metal fabrication solutions in adjacent markets that each can assist in supporting. As the data center industry continues to evolve towards larger hyper-scale data centers, operators are demanding customized, alternative designs and technologies to drive economies of scale. The strength of DAMAC’s customer relationships and its growth trajectory are impressive, and we look forward to building on that momentum to bring even more comprehensive solutions to current and new markets/core segments.”
