Bridgepoint, a global private equity firm, has announced its exit from investment in DMC Power, a leading designer and manufacturer of connector technology systems for high-voltage power infrastructure, as part of a majority purchase of the business by Golden Gate Capital, a leading private equity investment firm. Tony Ward will continue to lead the Company as Chief Executive Officer and will remain a significant shareholder. Financial terms of the transaction were not disclosed.
DMC Power was retained by Bridgepoint in 2013 when it sold Permaswage to Precision Castparts Corporation. Bridgepoint recognised DMC’s potential to be a standalone, innovative industrial technology company that could produce more energy-efficient, cost-effective and sustainable connection solutions for the North American power and utility industry.
The company operates two manufacturing facilities in Carson, CA and Olive Branch, MS, along with multiple distribution facilities strategically located across North America. With a team of over 200 employees, DMC Power is also a category leader in employee health and safety and environmental sustainability.
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.”
Michael Davy, Partner of Bridgepoint and Chairman of DMC Power, said:
“DMC Power has had a remarkable growth journey – and has increased its annual profits 20-fold during our ownership period. Through its investment in DMC Power, Bridgepoint identified and developed a new connector technology which is transforming the high voltage electricity transmission and distribution market. The products sales are growing strongly in North America and now have potential internationally. We look forward to seeing DMC Power build upon these achievements and wish the team every success for the future.”
Felix Lo, Managing Director at Golden Gate Capital, said:
“DMC Power is well-positioned to accelerate its growth trajectory by capitalising on several compelling secular tailwinds and increasing adoption of its next-gen swage connectors, as well as expanding into new applications and end markets. We congratulate the Bridgepoint team on this successful partnership, which we plan to continue in DMC Power’s next chapter.”
Javier Puig, Managing Director at Golden Gate Capital, 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 transaction is subject to customary closing conditions.
Harris Williams served as financial advisor and Davis Polk & Wardwell LLP served as legal advisor to DMC Power and Bridgepoint. KPMG and EY Parthenon also advised Bridgepoint. Baird served as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal advisor to Golden Gate Capital.