Maysteel Industries, which is backed by Littlejohn Capital, has acquired La Mirada, California-based DAMAC Products, a maker of custom data center infrastructure equipment. The seller was Prairie Capital. No financial terms were disclosed. Founders Advisors LLC provided financial advice to DAMAC and Prairie Capital on the deal.
ALLENTON, Wis., Dec. 18, 2017 /PRNewswire/ — Maysteel Industries, LLC (“Maysteel”), a leading manufacturer of custom, precision, OEM sheet metal enclosures, electrical cabinets and metal fabricated assemblies, announced today the acquisition of DAMAC Products, LLC (“DAMAC”), a leading manufacturer of custom data center infrastructure equipment.
DAMAC’s data center infrastructure products include server cabinets, wallmount racks, seismic and thermal management products, power distribution equipment and cable runway systems. DAMAC’s product line includes more than 2,500 items engineered to the most exacting specifications. The company’s engineers also work closely with customers to deliver tailored infrastructure solutions that precisely meet their needs. DAMAC currently serves a number of industries, including cloud computing, cloud storage, colocation, energy, finance, retail, and telecommunications and is tracking potential adjacent industry verticals, including healthcare, education, and government.
Kevin Matkin, Chief Executive Officer of Maysteel, said, “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. 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.”
Maysteel was acquired earlier this year by LJC Investments III, LLC, an investment vehicle controlled by Littlejohn Capital, LLC. Angus C. Littlejohn Jr., founder and Chairman of Littlejohn Capital, 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. 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.”
DAMAC is based in La Mirada, CA and for more than 30 years has designed and manufactured its innovative enclosures, racks and related products to meet the needs of its sophisticated data center customers. DAMAC will retain its name and maintain its operations in La Mirada.
DAMAC was formerly a portfolio company of Chicago-based Prairie Capital. Founders Advisors, LLC acted as the financial advisor to DAMAC and Prairie Capital.
Morrison Cohen LLP served as Maysteel’s legal counsel. Koley Jessen served as DAMAC’s and Prairie Capital’s legal counsel.
About Maysteel Industries
Maysteel specializes in designing, engineering and manufacturing custom, precision, OEM sheet metal enclosures, electrical cabinets and metal fabricated assemblies. The company’s product solutions are widely used in a wide variety of applications, including alternative energy, kiosk, gaming, security, medical, utility, industrial drive and automation, and self-serve/vending machine industries. Maysteel strives to provide the lowest total product cost by employing design for manufacturability solutions throughout the product lifecycle. Maysteel was founded in 1936 and today has manufacturing locations in Allenton, Wisconsin and Monterrey, Mexico.